Yield Rises Moderate as Nigerian T-Bills Trades Quiet
Average yield on the Nigerian Treasury bills in the secondary market sees a moderate uptick on Tuesday as the fixed income market trades cold, quiet and on a calm note amidst improved financial system liquidity.
A better liquidity position continues to drag short term rates downward, data from the FMDQ Exchange platform shows as analysts project a further disinflation for October 2021.
Money market data shows that the average interbank rate dipped by 775 basis points to 5.00% following contractions in both the Open Buy Back and overnight lending rates.
FMDQ Exchange platform shows that there was a 775 basis points drop open buy back (OBB) with a similar slowdown of 775 basis points dip in overnight rate to close at 4.75% and 5.25%, respectively.
Meanwhile, activities at the Nigerian Treasury bills secondary market traded on a calm note as the short and mid ends of the curve remained flat, Alpha Morgan Capital hinted in a report sent to clients.
However, the long end of the curve climbed by 10 basis points as market participants sold off the 296 days to maturity bill. Consequently, the average yield was climbed by 3 basis points to close at 5.37%.
In the Federal Government bonds secondary market, trading activities was bullish following declines across the curve. As a result, the average yield dropped by 3 basis points to close at 11.24%.
Again, activities at the Eurobond market sustained a bearish stance in today’s session following expansions across all instruments. In sum, analysts at Alpha Morgan Capital stated that the average yield climbed by 6 basis points to close at 6.65%.
Today, Federal Reserve commence a 2-day Federal Open Market Committee meeting, the last for the year 2021, to decide on bond-buying tapering despite weak economic performance in the United States. #Yield Rises Moderate as Nigerian T-Bills Trades Quiet
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