Naira steady as TBill yield sees marginal  increase

Naira, is steady at the investors’ window at N411.50 a dollar as the Nigerian Treasury Bill records a marginal increase in average yield, pared one basis point to 5.7per cent Wednesday.

However, the local currency appreciated by 0.4 per cent to N506.00 a dollar in the parallel market as banks sell the greenback to retail customers across the counter at N412.

In the money market, interbank rates were under pressure due to moderation in financial system liquidity in the space. Consequently, the overnight lending rate expanded by 100 basis points to 9.0%, in the absence of significant inflows into the system.

In its market report, Cordros Capital Limited hinted to investors that the Nigerian Treasury Bills secondary market was mixed, albeit with a bullish tilt.

Fixed income investment analysts said average yield pared by 1bp to 5.7 per cent following a cold outturn in the space as investors continue to cherry-picked securities instruments.

Meanwhile, across the benchmark curve, the average yield was seen straitened at the long (-2bps) end following market participants’ demand for the 344-day to maturity (-17bps) bill.

However, analysts said yield stayed flat at the short and mid segments. Equally, the average yield at the open market operations (OMO) segment tapered by 3 basis points to 8.1 per cent.

Amidst the plan to ramp up borrowings in the domestic market in the second half of 2021, trading in the Treasury bond secondary market was mixed today.

Cordros Analysts report shows that the average yield was unchanged at 11.9per cent.

But, yield slows down across the benchmark curve as mid-segment plunged 3 basis points following investors’ demand for the FEB-2028 (-13bps) bond.

However, the average yield expanded at the long (+3bps) end as investors sold off the APR-2037 (+19bps) bond; the average yield was flat at the short end.