Nigerian Treasury Bills Yields Fall on Naira Asset Attractiveness
The average yield on Nigerian Treasury bills (NTBs) declined by 4 basis points (bps) in the secondary market on Wednesday as investors continue to pile up positions in the naira asset.
Rising appetite for long-duration papers persisted in secondary market transactions as investors sought to lock in yields amid the latest rate repricing for long-tenor bills.
With mixed inflation and interest rate outlooks, real return on investment remains in double digits, with Treasury yields covering elevated consumer price index.
Traders saw demand for Nigerian Treasury bills that will expire on 04 Mar 2027 and 08 Jul 2027. Hence, the two bills saw their yields compressed 26 bps to 18.67% and 16 bps to 19.88%.
Meanwhile, investors sold down Treasury bills with a 03 Jun 2027 expiration date, and hence their associated yields rose 5bps to 19.69%.
“Demand was observed in select papers, including the 6 May 2027, 3 Jun 2027, 15 Jul 2027, and 29 Jul 2027 NTBs, which were quoted at 17.10%/16.90%, 16.90% offer, 16.90% offer, and 16.95%/16.90%, respectively”, Herwood Securities Limited said in a note.
Overall, the average yield fell 4bps to 18.11% from 18.15%, and the mild bullish bias is expected to hold. In the OMO segment, activity was concentrated in the January and December maturities.
The 12 Jan 2027, 19 Jan 2027, 15 Dec 2026, and 22 Dec 2026 OMO bills were quoted at 19.10% offer, 19.05% offer, 20.05%/20.00%, and 20.05%/19.95%, respectively.
Fixed income market analysts said a similar trading pattern is expected on Thursday, shaped by prevailing liquidity conditions and the possibility of an OMO auction. Oil Prices Slide Below $80 as Markets Price in US-Iran Talks
