Yields Steady as T-Bills Buying Momentum Slows
Yields were steady in the secondary market as investors slow down the Nigerian Treasury bill buying.
A slowdown in buying and selling momentum kept the average secondary market yield on T-bills unchanged at 6.60%.
Local deposit money banks’ activities at the Central Bank of Nigeria’s (CBN) standing lending facilities also declined due to healthy liquidity in the financial system.
Despite the settlement of the FGN bond auction, the system liquidity closed with a surplus of ₦900.25 billion, analysts said in their reports.
Then, short-term benchmark rates declined due to the liquidity size with an expectation that funds will also flow in this week.
With the solid funding profile in the system. the Nigeria Inter-Bank Offered Rate (NIBOR) decreased across most tenor buckets in the interbank market.
The open repo rate and the overnight lending rate moderated to 11.50% and 11.90%, respectively, compared to their previous levels of 11.60% and 12.20%.
Additionally, the three-month interbank offered rate decreased by 32 basis points to 13.18%, Cowry Asset said in its market report. The inflation rate has clouded real return on fixed interest securities in the local debt market.
The real return on investment has also faced pressures from the devaluation of the Nigerian naira, worsening market players’ expectations.
A slowdown in buying and selling momentum kept the average secondary market yield on T-bills unchanged at 6.60%.
Local deposit money banks’ activities at the Central Bank of Nigeria’s (CBN) standing lending facilities also declined due to healthy liquidity in the financial system.
Despite the settlement of the FGN bond auction, the system liquidity closed with a surplus of ₦900.25 billion, analysts said in their reports.
Then, short-term benchmark rates declined due to the liquidity size with an expectation that funds will also flow in this week. #Yields Steady as T-Bills Buying Momentum Slows#
