Nigerian Treasury Bills Yield Rises Further over Selloffs
The average yield on Nigerian Treasury bills yield rose further in the secondary market as selloffs persisted across standard maturities traded. A tight market liquidity spurred selling interest across the short and mid-dated papers, according to AIICO Capital Limited.
While fixed income securities traders noted that that market was calm, pocket of transaction registered had bearish undertone following spot rate price down at the Central Bank of Nigeria (CBN) main auction last week.
The market is yet to regain buying appetite given that inflation rate reversed downtrend recently experience due to increase in fuel pump price in Nigeria. Hence, the average yield expanded marginally by 1bp to 23.6%, according to Cordros Capital Limited.
The investment firm said across the curve, the average yield declined at the short (-1bp) and long (-2bps) ends. The yield contraction was driven by demand for the 22-day to maturity (-2bps) and 330-day tom maturity (-2bps) bills, respectively.
However, sell pressure nudged yield higher on the belly of the curve. Analysts reported that yield expanded at the mid (+10bps) segment due to the sell-off of the 162-day to maturity (+77bps) bill.
Nigerian Interbank Treasury Bills True Yield (NITTY) experienced upward movement across all maturities, while the average secondary market yield on T-bills rose by 0.02%, settling at 23.56% due to sell-sentiment, Cowry Asset Limited said in its note.
At the OMO bill secondary market, the average yield dipped by 2bps to 25.8% ahead of primary market auctions. #Nigerian Treasury Bills Yield Rises Further over Selloffs
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