Nigerian Treasury Bill Yield Declines by 13bps to 21%
The average yield on Nigerian Treasury bills declined by 13 basis points to 21% in the secondary market on Thursday, traders said in a note.
The yield contraction, according to analysts, was spurred increased positioning across the short, belly and long tenor on the curve.
Investors have been warping up short-term borrowing instruments ahead of fourth quarter primary market auctions by the Central Bank.
The CBN has announced plan to refinance N2.2 trillion of the maturing treasury bills in the fourth quarter of the year.
Spot rates on standard maturities have been on declined, and with inflation rates slowing, and believe there will be further adjustments.
Disinflation that started in July has seen negative interest rate on naira asset declined to less than 7%. Inflation ended July at 33.40% as against 22.75% benchmark interest rate.
In the secondary market for T-bills, bullish sentiments persisted on Thursday, Consequently, the average yield declined by 13bps to 21.1%.
In its market update, Cordros Capital Limited said across the curve, the average yield decreased at the short (-1bp), mid (-1bp), and long (-28bps) segments following demand for the 84DTM (-1bp), 161DTM (-2bps), and 266DTM (-159bps) bills, respectively. Similarly, the average yield dipped by 2bps to 24.0% in the OMO segment. #Nigerian Treasury Bill Yield Declines by 13bps to 21%
