Nigeria Treasury Bills Yield Declines to 25.6%
The average yield on Nigerian Treasury Bills (NTB) fell to 25.6% amid selective buying interest across the curve in the secondary market.
The market heated up as investors who lost their bids at the midweek auction flocked to the secondary market to satisfy their appetite for naira assets.
Investors preferred the newly issued one-year bills, whose spot rate was slashed at the midweek auction. According to AIICO Capital Limited, offers outnumbered bids as players sought to trade their winnings profitably.
The Treasury bills segment in the fixed income market was bullish despite liquidity constraints limiting trading volumes.
Notably, TrustBanc Financial Group said in a note that modest bids were observed on the newly issued 364-day paper, with the secondary market yield easing to around 22% on the day.
Across the curve, fixed income market analysts at Cordros Capital Limited revealed in a note that the average yield declined at the short (-2 bps), mid (-8 bps), and long (-2 bps) segments.
Demand for the 84-day to maturity (-2bps), 161-day to maturity (-43bps), and 343-day to maturity (-2bps) bills drove the yield contraction. The average yield closed flat at 27.2% in the OMO segment.
Overall, the average benchmark yield fell 2 bps to 25.59%. Analysts expect prevailing market sentiment to persist as liquidity conditions remain tight and investors digest signals from the PMA.
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