The Central Bank of Nigeria (CBN) is expected to roll over maturing treasury bills worth N33.8 billion at the Primary Market Auction (PMA) on Wednesday.
The bills will consist of 91-day (N4.38 billion), 182-day (N12.92 billion), and 364-day (N16.54 billion) tenors.
This is expected to heighten activities in the market, analysts at Afrinvest Securities Limited said in a report.
“While we encourage investors to source for attractive NT-Bills that currently present the best domestic money market opportunity, we further advise qualified investors with a longer term perspective to take advantage of better yields on short-term bonds that advanced last week as well as possible corporate offerings such as commercial papers and bonds,” the analysts said.
The foreign exchange market closed on Tuesday with the cost of the dollar unchanged at N386.94k at the Investors and Exporters (I&E) forex window, the data from FMDQ showed.
The market market opened on Tuesday morning with Naira appreciating by N0.25k as the dollar was trading at N387.63k compared with N387.88k opened on Monday.
The exchange rate at the black market was stable as the dollar traded at N445 the same as on the previous day. “Dollar is becoming scarce,” traders said.
Also the official rate at the Central Bank of Nigeria (CBN) has remained stable at N361.00 per dollar since the regulator adjusted its rate.
However, Naira gained N2.00k against the dollar at the retail Bureau as the market segment closed at N446/$ on Tuesday from N448 traded Monday.
The Central Bank of Nigeria (CBN) on March 2020 adjusted the exchange rate from N360 to N380/US$ at the I&E window, to stem the pressure in the foreign exchange market. The Apex bank also adjusted its official rate from N306 to N360.
At the money market on Tuesday, the Overnight (O/N) rate declined by 1.43 percent to close at 8.20 percent. The Open Buy Back (OBB) rate also declined by 1.10 percent to close at 7.40 percent.
The Nigerian treasury bills market ended the trading session on a flat note on Tuesday, with average yield across the curve remaining unchanged at 2.66 percent according to analysts at FSDH research.
In the Open Market Operation (OMO) bills market, average yield across the curve declined by 35 bps to 9.51 percent.
The FGN bond market closed on a negative note on Tuesday, as the average bond yield across the curve cleared higher by 45 bps to close at 6.37 percent.
Yields in the FGN Bond market are expected to increase further following insights from the DMO about the revised borrowing plans amid coronavirus pandemic, analysts at FSDH said.
