On Tuesday, the average yield on Nigerian Treasury notes rose by 77 basis points due to secondary market selloffs. Remember that in the Central Bank of Nigeria’s primary market auction last week, spot rates on 91-day treasury notes were priced lower.
Spot rates on 182-day and 364-day bills, on the other hand, were raised ahead of the release of Nigeria’s inflation report. The National Bureau of Statistics (NBS) is likely to announce consumer price index (CPI) numbers for February this week.
On Tuesday, the average yield on Nigerian Treasury notes rose by 77 basis points due to secondary market selloffs. Remember that in the Central Bank of Nigeria’s primary market auction last week, spot rates on 91-day treasury notes were priced lower.
Spot rates on 182-day and 364-day bills, on the other hand, were raised ahead of the release of Nigeria’s inflation report. The National Bureau of Statistics (NBS) is likely to announce consumer price index (CPI) numbers for February this week.
Throughout the curve, Cordros Capital analysts advised investors via email that the average yield on Treasury notes was steady in the short and mid segments but increased (by 121bps) at the long end. Nigerian Banks Provide an Update on the Naira Swap
The increase was driven by a sell-off in the 345-day to maturity instrument, which pushed the yield on the longer tenor instruments up by 10.92ppts. In the OMO bills group, the average yield remained unchanged at 3.0%.
Short-term benchmark rates in the money market rose in response to financial sector financing demands.
The open repo rate (OPR), and the overnight lending rate (OVN), climbed 13 basis points to 10.63% and 20 basis points to 11.01% at the close of the trading session.
