Nigerian Treasury Bills Yields Drop, Investors Bullish on Naira Asset
The yields on Nigerian Treasury bills (NTBs) declined in the secondary market as improved macroeconomic indicators boosted appetite for the naira asset.
The expectation of spot rate repricing fuelled buying sentiment, as fixed-income market investors continue to lock in yields in anticipation of sustained monetary easing.
The surplus banking system liquidity also drove bargain hunting across the short, belly and long end of the curve, where investors continue to express interest.
The average yield on Nigerian Treasury bills declined by 2 basis points to 17.86%, according to reports from Broadstreet investment firms, driven primarily by improved investor demand.
In its note, Herwood Securities Limited said yields fell across the curve, helped by high system liquidity, even as investors focused on the bond auction.
The market recorded buying activity in the short end and the belly of the curve, causing a 3-basis-point moderation in yields.
The 91-day bill fell 3 bps to 17.50%, the 180-day bill fell 76 bps to 17.12%, and the 365-day bill fell 3 bps to 18.58%, according to Herwood Securities Limited.
The investment firm said that only the yield on the 365-day Treasury bill is up 1.00% year-to-date. In the OMO market, trading centred on the 06 April 2027 bill, which closed at about 17.00%/16.90% (bid/offer).
The Treasury Bills market is expected to remain subdued, with limited buying interest at prevailing yields, fixed-income market analysts said.
Activity is likely to remain concentrated in the newly issued NTBs, while the OMO segment is expected to remain cautious ahead of the anticipated OMO auction, as market participants await fresh yield guidance. Treasury Bills Yield Rises to 19.5% Ahead of Q2 Supply
