Nigerian Open Market Operation (OMO) average yield has declined by seven basis points in the secondary market.
The average yield declined to 21.7% as a result of the increase in demand in OMO.
The primary market auction conducted by the Central Bank of Nigeria in the secondary market drive the investors move to lost bid in the secondary market.
The increased demand leads to increase in OMO bills prices in the secondary market, causing yields curve to decline.
However, this leads to Investors losing their interest in Nigerian Treasury bills.
“The Treasury bills space witnessed on short-dated instrument, 34-day to maturity treasury bills which caused its yield to spike by +129bps and a few long-dated bills also faced sell pressures.”
“Last week, the apex bank conducted two OMO bills auction with N500 billion standard maturities each. For the first OMO auction, fixed income traders at Cordros Capital Limited reported that the CBN offered instruments worth N500.00 billion.”
Traders said” investors remained averse to the 90-day bill and largely focused on the 1-year bill which attracted 99.9% of the total subscription made by investors at the primary market auction.”
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