CBN to auction N167.8bn treasury bills on Wednesday

The Central Bank of Nigeria (CBN) will on Wednesday roll over
treasury bills worth N167.8 billion across the 91-, 182- and 364-
Day tenors at the Primary Market Auction (PMA).

Consequently, yields in the secondary market are expected to
remain pressured due to high liquidity levels according to analysts
at Afrinvest Securities Limited.

Nevertheless, calm trading sessions are anticipated this week as
investors interest filter to alternative investments with higher
expected returns.

“We therefore maintain our recommendation that investors with
higher risk appetites and longer time horizon take advantage of
opportunities in available commercial papers or more attractive
bonds,” the analysts said.

There was a slightly bullish outing in the Nigerian Treasury
Bills secondary market last week, despite quiet trading sessions as
financial system liquidity levels remained high at N920.0bn on
Friday supported demand in the space.

However, average yield across all tenors marginally declined
marginally by 4bps Week-on-Week to close at 0.5%.

A report by Afrinvest noted that demand was observed largely on
long-term NT-Bills, with 16-Sep-21 (-32 bps) recording the most
buying interests. While the short and medium term maturities
experienced flat performances with no change from the previous
week.

In the Open Markt Operation (OMO) bills market according to a
report by FSDH research, the average yield across the curve
increased by 6 bps to close at 0.25 percent as against the last
close of 0.19 percent. Selling pressure was seen across short-term,
medium-term, and long-term maturities with average yields rising by
4 bps, 11 bps, and 5 bps, respectively.

Yields on 13 bills advanced with the 30-Mar-21 maturity bill
recording the highest yield increase of 22 bps, while yields on 13
bills remained unchanged.

At the foreign exchange market, Nigeria’s currency exchanged
with the dollar at the rate of between N464 and N465 on the black
market on Tuesday.

Naira remained stable at N462 per dollar at the Bureau De Change
(BDC) segment of the foreign exchange market.

At the Investors and Exporters (I&E) forex window, Naira
remained stable at N385.67 per dollar. Analysts at FSDH research
said most participants maintained bids between N380.00 and N393.54
per dollar.

“We expect that the CBN will maintain its current FX rationing
stand to keep Naira stable,” the analysts said.

The daily foreign exchange turnover at the I&E window rose
significantly by 173.05 percent to $140.95 million on Tuesday from
$52.62 millìon recorded on Monday, data from FMDQ indicated.

The Central Bank of Nigeria (CBN) will on Wednesday roll over
treasury bills worth N167.8 billion across the 91-, 182- and 364-
Day tenors at the Primary Market Auction (PMA).

Consequently, yields in the secondary market are expected to
remain pressured due to high liquidity levels according to analysts
at Afrinvest Securities Limited.

Nevertheless, calm trading sessions are anticipated this week as
investors interest filter to alternative investments with higher
expected returns.

“We therefore maintain our recommendation that investors with
higher risk appetites and longer time horizon take advantage of
opportunities in available commercial papers or more attractive
bonds,” the analysts said.

There was a slightly bullish outing in the Nigerian Treasury
Bills secondary market last week, despite quiet trading sessions as
financial system liquidity levels remained high at N920.0bn on
Friday supported demand in the space.

However, average yield across all tenors marginally declined
marginally by 4bps Week-on-Week to close at 0.5%.

A report by Afrinvest noted that demand was observed largely on
long-term NT-Bills, with 16-Sep-21 (-32 bps) recording the most
buying interests. While the short and medium term maturities
experienced flat performances with no change from the previous
week.

In the Open Markt Operation (OMO) bills market according to a
report by FSDH research, the average yield across the curve
increased by 6 bps to close at 0.25 percent as against the last
close of 0.19 percent. Selling pressure was seen across short-term,
medium-term, and long-term maturities with average yields rising by
4 bps, 11 bps, and 5 bps, respectively.

Yields on 13 bills advanced with the 30-Mar-21 maturity bill
recording the highest yield increase of 22 bps, while yields on 13
bills remained unchanged.

At the foreign exchange market, Nigeria’s currency exchanged
with the dollar at the rate of between N464 and N465 on the black
market on Tuesday.

Naira remained stable at N462 per dollar at the Bureau De Change
(BDC) segment of the foreign exchange market.

At the Investors and Exporters (I&E) forex window, Naira
remained stable at N385.67 per dollar. Analysts at FSDH research
said most participants maintained bids between N380.00 and N393.54
per dollar.

“We expect that the CBN will maintain its current FX rationing
stand to keep Naira stable,” the analysts said.

The daily foreign exchange turnover at the I&E window rose
significantly by 173.05 percent to $140.95 million on Tuesday from
$52.62 millìon recorded on Monday, data from FMDQ indicated.