Yields on Nigeria’s treasury bills (TBills) ticked upward unexpectedly at the last primary auction, as the Central Bank of Nigeria (CBN) increased its supply, presenting investors opportunity to bid for higher returns before rates are broadly anticipated to decline.
The N650 billion offered at this auction is higher than the N570 billion offered at the previous auction. Samuel Gbadebo, research analyst at CardinalStone, explained that this gave investors leeway to bid at a higher yield.
The true yields across all tenors inched upward to 15.92 percent, 16.81 percent, and 19.25 percent from 15.59 percent, 16.52 percent, and 18.72 percent, respectively, across the 91-day, 182-day, and 365-day tenors.