Nigerian T-Bills Yield Hits 10.21%
The average yield on Nigerian Treasury bills steadied at 10.21% amidst slowdown in trading activities at the space. Key market players adjusted to the new market dictates following what seems as all year round inflation rate surge.
As headline inflation continues to have fun, return on investment across financial markets have come under pressures. Tighten returns are also clouded by weak local currency, creating disincentive for investment in naira assets.
In spite of this, Nigerian lenders have raised their appetites ramping up fixed interest securities asset to augment earnings loss relating to weak appetite for credit creation.
Weak macroeconomic condition has raised assets quality risk for most deposit money banks in Nigeria, with growing provision for impairment charges on credit losses.
In the secondary market for Nigerian Treasury Bills, positive interest at the longer end of the yield curve was observed, resulting in an average T-bills closing at 10.21%.
Key money market rates, including the open repo rate (OPR) and overnight lending rate (OVN), experienced declines, reaching 14.84% and 15.54%, respectively. Reps To Investigate N200bn Expenditure On Postponed 2023 Census
This comes as money market rates decline further due to easing liquidity pressures. Data from FMDQ showed that the overnight lending rate contracted by 125bps to 15.54%, following inflows from FAAC disbursement worth N583.60 billion. Elsewhere, the average yield declined by 1bp to 14.6% in the OMO segment.
In the bond market, trading remained flat across the short and mid end of the curve, keeping the average yield on FGN Bonds unchanged at 15.72% due to limited market activity.
