SAT 04 SEPT, 2021-theGBJournal- The Treasury bills secondary market traded with bullish sentiments following higher demand on the back of the improved system liquidity.
Thus, the average yield contracted by 13bps to 5.4%. Across the market segments, the average yield at the NTB segment declined by 34bps to 4.6% but expanded by 8bps to 6.1% at the OMO segment.
On Thursday, the CBN sold NGN50.00 billion worth of OMO bills to market participants and maintained the stop rates across the three tenors, as with prior auctions (82-days: 7.0%, 152-days: 8.5%, and 327-days: 10.1%).
Also, the CBN also rolled over Special Bills maturities worth NGN4.20 trillion at 0.5% for three tenors of 30, 60 and 90 days.
In the coming week, we envisage lower average yields as market participants take positions ahead of further declines in auction stop rates. Also, we expect the NTB market to trade quietly as the CBN is set to roll over NGN138.17 billion worth of instruments.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: govandbusinessj@gmail.com
