The Nigerian Treasury Bills (NTB) market once again recorded chilly results as local depository banks, asset/fund managers and other market participants turned their attentions to the session. Central Bank of Nigeria (CBN) midweek auction.
As a result, the average of Treasury bill instruments remained flat after a persistent decline. NTB’s yield curve falls as the buying temperature in the secondary market falls. Banks maintained balance during the week as liquidity in the market remained high.
CBN will offer market participants the opportunity to apply for Nigerian Treasury Bonds to raise more than N180 billion in a primary market auction scheduled for today – Wednesday. According to traders, the level of liquidity in the financial system will affect investor demand or registration as market participants wait for a catalyst that will cause yields to rise again after interest rates rise. adjusted benchmark interest rate and inflation rose.
High double-digit inflation rates reduce the real return on investment in assets and the yield in naira. Fixed-income stock market assets remain exposed to fluctuations in the inflation rate.
According to market analysts, financial system liquidity fell slightly by 2.7% to 370.70 billion naira. Strong levels of liquidity kept interbank rates unchanged. The overnight lending rate was unchanged at 12.0% as the liquidity in the system closed to a net buy. Repo opening interest rate remained unchanged at 11.63%.
In the Nigerian Treasury bill segment, trading was mixed as market participants remained on the sidelines ahead of Wednesday’s auction results. The market recorded thin trades that did not affect yield curve shifts. As a result, the average secondary market return on Treasury bills closed at 6.35%.
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