Nigerian T-Bills Yield Rises to 1.6%, OMO Steadies

Nigerian T-Bills Yield Rises to 1.6%, OMO Steadies

The average yield on Nigerian Treasury bills (NTB) in the secondary market rises marginally, up a basis points to 1.6% on Thursday as trading activities turned bearish.

With declining spot rates at the Central Bank of Nigeria (CBN) primary market auction (PMA) following relatively strong liquidity levels, the yield curve has dropped significantly.

In December, the average yield on Nigerian Treasury bills had printed higher, at about 11% before the market shifted into rally mode, though the inflation rate remains high at 21.34%.

Across the curve, traders at Cordros Capital told investors via email that the average yield was flat at the short and mid segments.

However, the average yield expanded at the long (+3bps) end due to the selloff of the 280-day to maturity (+18bps) bill – Nov 09, 2023, T-bill.  Elsewhere, the average yield was unchanged at 2.0% in the OMO bills segment.

In the money market, the interbank rate fell across the board for all maturities. On the other hand, Cowry Asset Management analysts said short-term benchmark rates moved in a mixed direction.

Data from FMDQ showed that the open repo rate (OPR) was stable at 10.50% while the overnight lending rate fell 13 basis points to 10.75% in the absence of funding pressures. # Nigerian T-Bills Yield Rises to 1.6%, OMO Steadies

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