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Nigerian Treasury Bills: Bulls Reawaken

The Nigerian Treasury Bills (“NT-Bills”) secondary market closed the previous week on a bullish note, due to negative system liquidity (which stood at N795.17bn short as of Friday, 15 -Mar-24). As a result, the average yield fell by 18bps to close at 18.62% from 18.80% recorded in the past week.

A further breakdown shows that demands were witnessed majorly at the long end of the curve, as average yield dipped by 33bps. The average yields at the short and mid end of the curve fell by 4bps and 16bps respectively. This is evident in the 20-Feb-25 and 21-Nov-24 instruments, as their yields declined by 107bps and 91bps to close at 23.71% and 20.28% sequentially.

On Wednesday, 13-Mar-24, the Apex bank rolled over a total of ₦161.49bn across the 90- Day, 182- Day and 364-Day tenors at the Primary Market Auction (“PMA”), stop rates were 16.23%, 17.00%, and 21.12% respectively.

This week, we expect the bullish outing to continue as the unmet bids from the PMA flow into the secondary market. Thus, we advise investors to trade cautiously and take advantage of relatively attractive bills across the curve.


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