SAT, 04 JUNE, 2022-theGBJournal| Bearish sentiments dominated the Treasury bills secondary market despite the buoyant liquidity in the system.
Cordros Research analysts attribute the performance to market participants selling off their positions amid scarce bids for the available offers.
Thus, the average yield across all instruments expanded by 10bps to 4.1%. Across the segments, the average yield expanded by 13bps to 4.0% at the NTB segment but was flat at 4.4% at the OMO segment. At this week’s OMO auction, the CBN offered and allotted N40 billion worth of bills to market participants and maintained stop rates across the three tenors, as with previous auctions.
Following the relatively lower inflows expected in the system next week, we expect low demand for T-bills and a slight expansion in yields from current levels. Also, we expect market focus to be shifted to the NTB PMA holding on Wednesday (8th June), with the CBN expected to roll over N167.22 billion worth of instruments.
Twitter-@theGBJournal| Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
