Yield Rises as Investors Cash Out Nigerian T-Bills
The average yield on Nigerian Treasury bills inched higher following sell pressures on short-dated instruments amidst loads of uncertainties in the economy. Consequently, the average secondary market yield on T-bills rose to 1.62% due to selling pressure on the 9 Mar 2023 and 30 Mar 2023 T-bills.
Market analysts have projected that the yield curve would shift upward this week on expectation of a lower liquidity level in the financial system.
In the money market, short-term benchmark rates nosedived after debit for the previous auction that triggered funding pressures which drive local banks with liquidity to begin to request high rates.
Traders said short-term benchmark rates, such as the open repo rate (OPR) and the overnight lending rate, increased 25 basis points to 10.75% and 39 basis points to 11.20% respectively despite inflows from OMO maturities.
The financial system liquidity level was boosted by N60.00 billion from OMO Bills that matured and remained un-refinance by the apex who is facing a crisis on new naira notes.
Activities in the Treasury bills secondary market were bearish, as the average yield expanded by 19 basis points to 1.62%. Across the curve, analysts said the average yield expanded at the short (+41bps) end due to profit-taking on the 23-day to-maturity (+187bps) bill.
On the other hand, the average yield on T-Bills closed flat at the mid and long segments. Similarly, the average yield expanded by 81 basis points to 2.1% in the OMO bills segment. #Yield Rises as Investors Cash Out Nigerian T-Bills