The Nigerian Treasury Bills (NT-Bills) secondary market closed the week on a positive note, supported by improved system liquidity, (which stood at N776.3bn long as of Wednesday, 28-Aug-24). Consequently, average yield dipped by 111bps, to print at 21.21%, from the previous week’s 22.32%.
Buying interests were witnessed across all curves as average yield on the short, mid, and long ends contracted by 100bps, 99bps, and 151bps w-o-w respectively. Specifically, the 21-NOV-24 (down 124bps), 20-FEB-24 (down 247bps), and 27-MAR-24 bill (down 383bps) enjoyed the most buy interest.
This Wednesday, 04-Sep-24, the Apex bank is scheduled to offer bills worth ₦233.3bn across the 91-, 182- and 364-Day instruments at the Primary Market Auction (PMA).
We believe the result of the auction will set the tone of the market for the rest of this week. Thus, we advise investors to look out for relatively attractive bills across the curve, as well as possible commercial paper offerings.
