Investors Take Profit on Treasury Bills, Yield Rises to 18.81%
Investors booked profit in Nigerian Treasury bills secondary market across the short, belly and long end of the curve over sustained negative appetite for the naira asset.
Due to sell pressures, yields increased by 18bps on the short-end, 1bp on the mid-segment, and 23bps on the long-end of the curve, CardinalStone Securities Limited told investors in a note.
Consequently, the overall average yield increased to18.81 basis points, underscoring ongoing weak and negative investor sentiment in the secondary market. Traders reported that they saw mild buy interest emerged on the 20-Aug NTB at 17.35/17.10%, while attention was focused on the 18-Nov, 23-Dec, and 7-Apr OMO bills.
Wide bid-ask spreads kept volume low, according to AIICO Capital Limited, noting that trading session is likely to follow a similar pattern. In separate commentary notes obtained, a slew of analysts are anticipating yield to drop sharply, saying the bearish trend mirrors banks selling style to take advantage of higher rates at the OMO bills auction.
The Central Bank of Nigeria (CBN) has been offering foreign portfolio investors and banks, the eligible participants at the OMO bills auction, juicy rates. This prompted asset rotation to take advantage of higher yield amidst disinflation and mixed expectation about monetary easing.
Nigeria’s headline inflation slowed slightly to 21.88% in July 2025 from June’s 22.22%, according to fresh NBS data. Month-on-month inflation actually accelerated to 1.99% in July (up from 1.68% in June), showing price increases ramped up. #Investors Take Profit on Treasury Bills, Yield Rises to 18.81% Repo, Overnight Rates Sink as Huge OMO Inflow Boosts Liquidity
