Money Market

Treasury Bills: Bearish Momentum Sustained

The Nigerian Treasury Bills (“NT-Bills”) secondary market last week maintained a bearish posture, as weak system liquidity (₦1.26trn short as of Wednesday, 3-Jul-24) spurred negative investors’ sentiment in the market. Consequently, average yield advanced 29bps w-o-w to settle at 22.51% from 22.22% recorded in the previous week.

Furthermore, selloffs were predominantly witnessed at the long end of the curve, noticeable on the 10-Apr-2025 (65bps) and 24-Apr-25 (66bps) maturities which pushed the average yield upward by 92bps. Conversely, buy interests were seen at the short and mid ends as average yield declined 7bps and 9bps respectively.

This Wednesday, 10-Jul-2024, the Apex bank is scheduled to roll over maturing bills worth N166.11bn at the NT-Bills Primary Market Auction (PMA) across the 91-, 182-, and 364-Day tenors.

Going into the week, we expect the outcome of the auction to dictate market sentiment. Thus, we advise investors to take advantage of relatively attractive bills across the yield curve while remaining alert for possible commercial paper offerings.


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