Yield on T-Bills Spikes, Bond Slides Small as Naira Falls
The average yield on Nigerian Treasury Bills or T-Bills spikes two basis points to 3.19 per cent on Tuesday while Bonds tracks lower by a basis point and the open market operations (OMO) bills remain steady in the secondary market.
Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at the long (+3bps) end as market participants sold off the 303 day to maturity (+26bps) bills, Cordros Capital analysts said.
Data from the FMDQ Exchange shows that the Nigerian local currency, naira, depreciated by 0.12per cent against the U.S. Dollar at the Investors and Exporters FX window to close at N417.00.
Broadstreet anticipates the local currency will be depreciated further as dollar scarcity bites following a slowdown in foreign interest in the economy. READ: FGN Eurobond Yield Spikes to 8.04%, Naira Steadies
In the money market, short term interest rates decline again due to healthy liquidity in the financial system. Then, the average interbank rate dropped by 9 basis points to close at 4.67per cent.
Market data shows that the Open Buy Back rate remained flat while the Overnight rate dipped by 17 basis points to close at 4.50 per cent and 4.83 per cent, respectively.
Activities at the T-Bills secondary market traded on a quiet note but Alpha Morgan Capital traders said they see some traction seen on the Jan-2023 bill. Consequently, the average rate climbed by 2 basis points to close at 3.19 per cent.
Activities at the FGN bond secondary market was calm with a bullish nuance, with Jan-2026 maturity witnessing the most traction as well as some demands seen on the Dec-2031 and Jul-2034 maturities.
As a result of buying interest, the average yield dropped slightly by one basis point to close at 10.68 per cent. Today, activities at the FGN Eurobond kicked the week off on a bullish, following buying interests across the sovereign curve. In sum, the average yield was down by 27 basis points to close at 7.69 per cent, according to Alpha Morgan Capital note.
#Yield on T-Bills Spikes, Bond Slides Small as Naira Falls
