Investor appetite for Treasury Bills (T-Bills) and bonds weakened yesterday, a development analysts linked to uncertainty which resulted from activities at the primary market auction (PMA) as well as moderated system liquidity.
“The yield curve rose an average of 15basis points (bps), with notable concentration on the short-end of the curve. Justifying market concern, the 91, 182, and 364-day bills closed at 10.05 percent, 13.49 percent and 13.58 percent respectively at the PMA.
Notably, the CBN further reinforced its appetite for mid- and long tenored bills (overallotment of the 364-day bill – N93bn allotment Vs. N71bn offer),” research analysts at Associated Discount House (ADH) Limited said yesterday.
The analysts noted that with the increasing spread between short- and longdated bills at the primary market, “we reiterate our outlook on further Naira devaluation post-election in 2015. “Notably, inflows from upcoming Treasury bill maturities will be fully sterilised by funding for today’s (that is yesterday) PMA. Thus, we look forward to another bearish session in the secondary market tomorrow (that is today); we expect the sell-off to be relatively pronounced on long-dated bills,” they added.
The currency market was volatile, with the local currency trading as high as N188/US dollar at the interbank market.
Though, naira closed at N183.35/US dollar following the greenback’s supply prop-up by CBN.
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