Nigerian Treasury Bills Yield Falls Ahead of Inflation Report
Trading activities on Nigerian Treasury bills remained tight, albeit with a bullish undertone, as the average yield contracted by a basis point to 17.39% in the secondary market.
Ahead of consumer price data this week, the market reacted to recent spot rates repricing at the belly and long end of the curve, though bargain hunting has been softened by mixed investor sentiment.
Disinflation is expected to persist due to movement in prices of food items and a stable exchange rate. But analysts said recent strike actions that caused Nigeria to lose oil revenue may cause a drag.
The Nigerian treasury market experienced a mild bearish touch on some fixed-interest securities assets – driven by declining system liquidity. The financial system liquidity reduced to N2 trillion following a series of open market operations actions that took N5.32 billion from the financial system last week.
In the Treasury bills market, traders reported that yields on select long-dated maturities were mixed, with declines recorded on the 18-Jun-26 and 08-Oct-26 bills, while the 23-Jul-26 and 20-Aug-26 bills saw slight upticks.
Across the curve, the average yield contracted at the short (-2 bps) and mid (-3 bps) segments, driven by the demand for the 87-day-to-maturity (-3 bps) and 178-day-to-maturity (-3 bps) bills, respectively.
However, yield expanded at the long (+1 bp) end due to selloffs of the 283-day-to-maturity (+13bps) bill. Similarly, the average yield contracted by 7 bps to 20.5% in the OMO segment. AXA Mansard Jumps by 12% as Investors Bet on Earnings Outlook
