Treasury Bills Yields May Slide Further In Second Quarter of 2015

Indications have emerged that Treasury bills yields may slide slightly in second quarter of 2015 due to the expected liquidity in the market and the renewed interests in the government securities by the institutional investors.

However, participation and subscription levels at the auctions is expected to be higher than the first quarter of 2015.

In the first quarter, subscription levels leaped to N2.85trillion, which is 158 per cent and 59 per cent higher than the preceding and corresponding quarter in 2014, which stood at N1.11trillion and N1.80trillion respectively.

According to data from the Central Bank of Nigeria, CBN, aggregate issuance in the first quarter 2015 stood at N2.06trilion, which was 37 per cent and 96 per cent higher than volumes recorded in preceding and corresponding quarters in 2014 which stood at N1.51trillion and N1.05trillion respectively.

Total T.bills issuance at the Primary Market Auction, PMA, for first quarter, 2015 rose to N1.24trillion, which was 45 per cent and eight per cent higher than fourth quarter of 2014 and corresponding period of 2014, which stood at N857.15billion and N1.14trillion respectively.

Average marginal rates for 91-day, 182- day and 364-day benchmarks in first quarter of 2015 stood at 10.94 per cent, 14.26 per cent and 14.98 per cent respectively, compared to average rates of 0.75 per cent, 11.43 per cent and 11.72 per cent recorded in corresponding period of 2013.

Treasury bills turnover in the first quarter of 2015 rose to N8.44trilion, which was 103 per cent and 145 per cent higher than fourth quarter of 2014 and corresponding period of 2014, which stood at N8.22trillion and N5.83trillion respectively.


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