Investors Maintain Bearish Pose on T-Bills Ahead of Inflation
The average yield climbed as investors maintained a bearish pose on Nigerian Treasury bills (T-Bills) in the secondary market ahead of the inflation data release on Monday, investment banking firms revealed.
Traders reported a sell-off across the short, belly, and long ends of the curve over four trading sessions due to the Democracy Day holiday.
The market anticipates the inflation rate to climb for the third month due to geopolitical instability, which stoked the global energy crisis. The consumer price index (CPI) is expected to affect spot rates on Nigerian Treasury bills amid a drive to invest in the booming equity space.
Pension fund managers and asset managers have been garnishing their appetite by taking additional bets in the risky stock market, which has delivered a 57% return from the beginning of the year to date.
Reflecting risk-off sentiment, investors exited positions in the treasury bills market last week, and yields rose as the real return on investment in the fixed-income market declined.
Traders reported that yields widened across the short (+3 bps), mid (+6 bps), and long (+1 bp) segments of the curve. Overall, the average yield inched up by 3 basis points to 17.69% last week.
