Treasury Bills Yield Shrinks 5bps Ahead of Auction
The average yield on Nigerian Treasury bills declined by five or 5 basis points (bps) in the secondary market to 25.2%, traders said in separate notes.
The yield contraction was triggered by buying interest across the short, belly, and long-tenor Treasury bills papers in the market. Investors increased their portfolio holdings ahead of the primary market auction on Wednesday.
The market has gotten inflation acceleration after the Central Bank adjusted the interest rate to 27.50% to anchor the consumer price index. Fixed income market analysts saw buying interest in the long end of the yield curve, particularly in the November 2025 papers.
However, trading volumes were thin. However, only few trades were consummated despite improved liquidity conditions, TrustBanc Financial Group said in a note.
The 6-Mar and 9-Oct maturities recorded the steepest declines in yield this week, analysts said in a daily market report. The average yield declined at the short (-5 bps), mid (-5 bps), and long (-6 bps) segments, Cordros Capital Limited told investors in a note.
The yields contracted due to demand for the 80-day to maturity (-5bps), 129-day to maturity (-6bps), and 325-day to maturity (-6bps) bills, respectively. Similarly, the average yield declined by 22 bps to 27.0% in the OMO bills segment in the secondary market.
The Central Bank of Nigeria (CBN) is expected to conduct a primary market auction on Wednesday as part of its fourth quarter liqudity managerment plan. #Treasury Bills Yield Shrinks 5bps Ahead of Auction Naira Plunges on Suboptimal FX Intervention
