Fixed Income Investors Exit Positions in Nigeria Treasury Bills
The average yield on Nigerian government Treasury bills rose as fixed income market investors began to exit positions, reflecting a negative mood in the secondary market.
Spot rates have been on the decline, thanks to excess liquidity, disinflation, and buckets of key improvement in other key macro indicators. Hence, analysts are of the view that at a point, the declining yield would trigger capital reversal as foreign investors could be forced to exit positions.
On Wednesday, the treasury bills market experienced sell-offs that lifted the yield curve. Investors sold off the Nigerian Treasury bills that will mature on 09-JUL, 04-JUN, and 19-FEB papers at the long end of the curve.
As a result of the fresh risk-off sentiment, the average yield expanded by 10 bps to 17.6%, investment banking firms said in their separate report. Across the curve, the average yield declined at the short (-1 bp) and mid (-1 bp) segments, Cordros Capital Limited highlighted.
The yield contraction was driven by the demand for Nigerian Treasury bills maturing in 85 days (-1 bp) and 176 days (-1 bp), respectively. However, yield expanded at the long (+22 bps) end of the curve as investors exited positions in Nigerian Treasury bills maturing in 344 days (+77 bps).
Yields climbed notably at the mid- to long end of the curve, with the 05-Mar-2026 and 09-Jul-2026 papers rising by 16 bps and 77 bps to 18.69% and 18.69%, respectively. Conversely, the average yield contracted by 2 bps to 24.7% in the OMO segment. #Fixed Income Investors Exit Positions in Nigeria Treasury Bills
Foreign Investors Increase Bets on Nigeria’s Eurobonds, Rates Ease
