Treasury Bills market closes in red as average yield expands by 10 points
The NT-Bills secondary market closed on a negative note on Tuesdat, with the average yield across the curve increasing by 10 basis points to close at 5.41 per cent from 5.31 per cent on the previous day.
Average yields across short-term and medium-term maturities widened by 36 basis points and 13 basis points, respectively, while the average yield across long-term maturities fell by 2 basis points.
Meanwhile, maximum selling pressure was seen in the NTB 1-Jul-21 (+54 bps), NTB 15-Jul-21 (+48 bps) and NTB 29-Jul-21 (+41 bps) maturity bills.
In the OMO bills market, the average yield across the curve increased by 32 basis points to close at 8.97 per cent as against the last close of 8.65 per cent.
Selling pressure was seen across short-term and medium-term maturities with average yields rising by 129 basis points and 22 basis points, respectively.
However, the average yield across long-term maturities remained unchanged at 10.07 per cent.
Yields on 11 bills advanced with the 8-Jun-21 maturity bill recording the highest yield increase of 218 basis points, while yields on 3 compressed with the 8-Feb-22 maturity bills registering the highest yield decline of 10 basis points.
Bond market
FGN bonds secondary market closed on a positive note today, as the average bond yield across the curve cleared lower by 2 basis points to close at 9.35 per cent from 9.37 per cent on the previous day.
Average yields across the short tenor and medium tenor of the curve compressed by 2 basis points and 1 basis point, respectively, while the average yield across the long tenor of the curve widened by 1 basis point.
The FGN Sovereign Bond 15-MAY-2022 bond was the best performer with a decline in yield of 18 basis points, while the FGN Sovereign Bond 15-AUG-2021 bond was the worst performer with an increase in yield of 25 basis points.
Meanwhile, the DMO has scheduled an FGN bond auction for Wednesday to offer bonds worth N150 billion through re-opening of the 10-year (N50 billion), 15-year (N50 billion), and 30-year (N50 billion) tenors. The bond settlement will take place on May 21, 2021.
