Bonds, T-Bills Witness Marginal Increase in Yields Pricing
Bonds, as well as Treasury bills (T-Bills), witnessed an upward yields pricing mid-week, albeit marginal, amidst tepid trading activities in the fixed income market in recent time.
Similarly, the money market space felt a slight pressure as the overnight lending rate expanded by 25 basis points to settle at 10.5% due to a slow down in the financial system liquidity position.
Cordros Capital analysts said in a market report on Wednesday that overnight lending expansion occurred in the absence of any significant inflow.
It added that the Nigerian Treasury bill (NTB) secondary market was mixed albeit with a bearish tilt, as the average yield expanded slightly by a basis point to 6.8%.
Across the benchmark curve, Cordros Capital analysts spotted that average yield expanded a basis point at the long end following sell-off of the 309-day to maturity (+23bps) bill.
However, the short and mid segments closed flat, according to analysts’ fixed income market report. Meanwhile, the average yield at the open market operations (OMO) segment recorded a two basis points expansion to 9.9%.
Similarly, analysts hinted that trading in the Treasury bond secondary market was mixed with bearish sentiment, as the average yield expanded slightly by a basis point to 11.5%.
Across the benchmark curve, Cordros Capital analysts said in today’s market report that average yield expanded at the short (+3bps) end due to sell-off of the JAN-2026 (+7bps) bond but closed flat at the mid and long segments.
In the currency market, the Nigerian local currency, naira, was flat at N411.45 a dollar and N503.00 at the Investors and Exporters window and parallel market, respectively.
However, the gross external reserve at $33.14 billion has yet to buck the free falling trend that began since covid-19 lockdown despite the oil market rally.
Bonds, T-Bills Witness Marginal Increase in Yields Pricing
