Yield on Nigerian Treasury Bills Slips Below 25%
The average yield on Nigerian Treasury bills slipped below 25% as sell pressures eased in the secondary market. The market experienced a surge in demand amidst debate over the consumer price index rebasing plan.
Some analysts believe that rebasing to the latest date, 2024, will reduce the inflation figure and the asset pricing in the debt market. Fixed income market analysts reported that the Treasury bills market opened the week with robust demand for long-term securities, driven by attractive rates amid ample liquidity.
The 1-year NTB attracted notable bids around 20.90%–21.10%, AIICO Capital Limited told investors in a note, though limited selling due to a wide bid-ask spread resulted in few executed trades. Analysts said some interest was observed in short-term April bills, but trading remained minimal.
Yields moderated slightly across the curve, with long-dated maturities such as 6-Nov, 4-Dec, and 8-Jan recording the most significant declines, dropping by 6bps, 62bps, and 6bps, respectively, TrustBanc Financial Group said in a note.
Across the curve, the average yield declined at the short (-5 bps), mid (-5 bps), and long (-9 bps) segments, according to Cordros Capital Limited. The contraction in yield was driven by demand for the 59-day to maturity (-5bps), 164-day to maturity (-5bps), and 311-day to maturity (-62bps) bills, respectively.
Similarly, the average yield declined by 6 bps to 28.0% in the OMO bills segment in the secondary market. Overall, the average benchmark yield declined by 10 bps to close at 24.92%. Nigerian Exchange Rises by N795bn as Banking, Consumer Stock Rally
