Nigerian Treasury Bills Yield Falls, Real Interest Rate Eases
The average yield on Nigerian Treasury bills declined to 17.04% in the secondary market due to sustained positioning in the naira curve.
Fixed-income investors experienced a moderate volume transaction in the secondary market, having earlier caught a dovish policy signal amid sustained inflation rate moderation.
The real return moderated gradually as inflation-chasing slowed following the Central Bank’s monetary policy authority’s decision to reduce the key interest rate by 50 basis points.
The real interest rate was reduced to 11.40% as the 26.50% monetary policy rate began to catch up with the 15.10% consumer price index, which measures Nigeria’s headline inflation.
The NTB market closed bullish, though analysts said investors will continue to digest the impact on yield movements as they build their portfolios.
Notable yield contractions were recorded in the 19-Nov-26(-125bps), 22-Oct-26(-89bps),and 8-Oct-26(-82bps) maturities, Meristem Securities said in a note.
Market activity was relatively measured, with participants maintaining a cautious but opportunistic stance, according to AIICO Capital Limited.
Across the mid-tenor segment, the 09-Apr-26 bill declined by 28bps to 16.02%, while the 09Jul-26 and 06-Aug-26 maturities eased by 37bps and 33bps to close at 15.82% and 15.76%, respectively.
Bullish momentum strengthened further at the long end, where bills compressed significantly. Meanwhile, short-dated papers closed largely unchanged, reflecting subdued activity at the front end
Investment firm reported that the average benchmark yield is declining by 36bps to 17.04%. Similarly, the average benchmark yield moderated by -1bp to close at 20.13% in the OMO market.
Anchoria Securities analysts expect demand for mid- to long-term instruments in the near term on the back of the recent policy rate adjustment, as investors are likely to tilt towards longer maturities to lock in relatively attractive yields. UBA Climbs to N2.1trn as Investors Bet on Earnings Outlook
