Nigerian Treasury Bills Yield Falls by 20 bps to 17%
Average yield on Nigerian Treasury bills fell by 20 basis points to 17% as trading activities closed on a bullish note in the secondary market, reflecting sustained demand for naira assets ahead of inflation data for October.
The market experienced buying interest across the short, belly, and long end of the curve in the absence of a primary market auction on Wednesday.
Fixed income market analysts at CardinalStone Securities Limited observed yield contractions in most bills, especially the 25-DEC (-100bps) and 22-JAN (-118bps) bills.
Across the curve, the average yield contracted at the short (-42bps), mid (-18bps) and long (-5bps) ends Cordros Securities Limited told investors on Wednesday.
The yield contraction was driven by the demand for the Nigerian Treasury bills that will expire in 71 days (-118bps), 176 days (-41bps) 358 days (-16bps).
Consequently, the average yield contracted by 20bps to 17.02%. On inflation, market consensus remains that headline inflation will reduce below 18%.
The sustained disinflation trend is also anticipated to drive the monetary policy committee’s expansionary policy in November meeting.
Analysts are projecting between 50 and 100 basis points reduction in the benchmark interest rate. In the OMO segment, the average yield contracted by 9bps to 21.8%. #Nigerian Treasury Bills Yield Falls by 20 bps to 17% Fidelity Bank: Analysts See 84% Upside on New Target Price
