Nigeria Treasury Bills Yield Declines to 25.6%
The average yield on Nigerian Treasury Bills (NTB) declined to 25.6% due to selective buying interest witnessed across the curve in the secondary market.
The market was heated up with increased demand as investors who lost their bids at the midweek auction flocked the secondary market to satisfy their appetite for the naira assets.
There was preference for the newly issued one-year bills whose spot rate was slashed at the midweek auction. According to AIICO Capital Limited, there were more offers than 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, modest bids were observed on the newly issued 364-day paper, with the secondary market yield easing to around 22% levels on the day, TrustBanc Financial Group said in a note.
Across the curve, the average yield declined at the short (-2 bps), mid (-8 bps), and long (-2 bps) segments, fixed income market analysts at Cordros Capital Limited revealed in a note.
The yield contraction was driven by demand for the 84-day to maturity (-2bps), 161-day to maturity (-43bps), and 343-day to maturity (-2bps) bills, respectively. The average yield closed flat at 27.2% in the OMO segment.
Overall, the average benchmark yield declined by 2 bps, closing at 25.59%. Analysts said they expect the prevailing market sentiment to persist as liquidity conditions remain tight and investors digest signals from the PMA. #Nigeria Treasury Bills Yield Declines to 25.6% Lagos Plans Future with Fewer Cars on Roads
