Nigeria Treasury Bills Yield Dips 5bps to 24.2%
The average yield on Nigerian Treasury bills dipped by 5 basis points in the secondary market to close at about 24.2%. The secondary market heated up with a mix of buy and sell side trading amidst expectations that the policy rate would be adjusted due to inflation concerns.
The Treasury bills market traded soft, although there were pockets of transactions observed across the mid, belly, and long tenors. Investors maintained a cautious stance in anticipation of the Central Bank of Nigeria’s monetary policy committee’s decision on benchmark interest rate.
In their pre-monetray policy meeting projections, analysts expect the CBN to hike rate at the end of the meeting on Tuesday. Still, local investors bet on 4-Sep and 20-Nov Treasury bill maturities.
Overall, the average benchmark yield declined by 5 bps, closing at 24.19%. Across the curve, the average yield declined at the short (-4 bps), mid (-5 bps), and long (-5 bps) segments, according to Cordros Capital Limited.
The yield contract followed buying interests in the 87-day to maturity (-5 bps), 178-day to maturity (-5 bps), and 283-day to maturity (-6 bps), respectively. Also, the average yield contracted by 5 bps to 27.1% in the OMO bills segment in the fixed income market.
#Nigeria Treasury Bills Yield Dips 5bps to 24.2% FBN Holdings Sheds 8% as Investors Exit Positions
