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Nigeria_Fixed Income: T-bills market upbeat despite higher PMA rates

At yesterday’s PMA, the CBN sold c.N219 billion across the 91DTM, 182DTM, and 364DTM bills at effective yields of 6.19%, 9.08%, and 10.48% respectively. Rates across all three maturities came in relatively above current secondary market levels (14bps higher on average). Nevertheless, demand remained dominant across all maturities in the T-bills market, with the short dated maturities recording the most significant demand (yields down 53bps on average). Particularly, yields on the 49DTM (-111bps) and 84DTM (-72bps) bills moderated to close at 4.04% and 6.53% respectively. However, the bond market traded mixed as buying persisted across maturities on the extreme ends of the space, whilst selloffs steered yields higher along the mid-dated bonds. Whilst yield on the 15.10% FGN APR 2017 declined 11bps to 10.35%, the yield on the 15.54% FGN FEB 2020 bond advanced 20bps to 11.79%.