Nigerian Treasury Bills Rally, Yield Declines Sharply
The Nigerian Treasury bills market rallied as investors seeking to park their funds in the money market instruments positioned in naira assets. As a result, the average yield on Treasury bills retreated sharply amidst inflation concerns.
On Wednesday, there was sustained interest in April 2025 and May 2025 bills, while only modest interest was observed in the December 2025 and January 2026 securities, traders said.
A slew of Broadstreet fixed income market analysts said few transactions were completed, leading to a decline in the average mid-rate as market players capitalized on attractive yields across the curve.
Mid- and long-dated maturities led the yield decline, with the 5-Jun (-389bps) and 10-Jul (-340bps) papers recording the sharpest drops, TrustBanc Financial Group Limited said in a note. Consequently, the average benchmark yield receded 159 basis points to close at 23.37%.
In their outlook, fixed income market analysts expect prevailing market conditions to persist, albeit at a moderate pace, as investors find yields attractive at prevailing levels. Across the curve, the average yield contracted at the short (-93 bps), mid (-259 bps), and long (-96 bps) segments, Cordros Capital Limited told investors in a note.
The investment firm said the yield contraction was driven by the demand for the 85-day to maturity (-298bps), 127-day to maturity (-389bps), and 190-day to maturity (-239bps) bills, respectively.
Also, the average yield remained unchanged at 27.5% in the OMO bill segment. #Nigerian Treasury Bills Rally, Yield Declines Sharply IAS 29: Nigeria Not Hyperinflation Economy – Financial Reporting Council
