Nigerian Treasury Bill Yield Falls to 22.5% Ahead of Auction
The average yield slipped as investors’ appetite for the Nigerian Treasury bill increased in the secondary market. Separate investors’ notes obtained revealed that the average yield on Nigerian bills slumped by 4 basis points due to increased demand.
On Monday, trading activities ended on a bullish note ahead of the Central Bank’s midweek primary market auction for Nigerian Treasury bills. Notable demand was seen in the fixed income market at the beginning of the week as investors anticipated further guidance on the direction of rates.
Yields moderated slightly across the curve, with the 4-Dec and 8-Jan maturities recording the biggest declines, both dropping by 6 bps. Demand was observed from a limited number of participants, while others sought to take advantage of lower yields by liquidating their positions.
The average yield contracted by 4 basis points to 22.5%, Cordros Capital Limited said in its investors’ note. Across the curve, the average yield contracted at the short (-4 bps), mid (-4 bps), and long (-5 bps) segments.
The yield contraction was driven by the demand for the 17-day to maturity (-5bps), 171-day to maturity (-4bps), and 339-day to maturity (-6bps) bills, respectively. Similarly, the average yield declined by 12 bps to 27.4% in the OMO segment. #Nigerian Treasury Bill Yield Falls to 22.5% Ahead of Auction US Dollar Rises Ahead Macro data, Inauguration
