Nigerian Treasury Bills Yield Shrinks to 25.7% vs Inflation
As demand for naira assets increased, the average yield on Nigerian Treasury bills declined by 5 basis points in the secondary market to settle at 25.7% following an accelerated inflation rate for November 2024.
The increase in consumer price index has further widened the real return on Treasury bills in spite of the latest benchmark interest rate adjustment.
Despite strong investors’ appetite, the real return gap in the Treasury bills segment has inched above 7% after the authority hiked the policy rate to 27.50% versus a 34.60% inflation count.
In the secondary market, traders opened the week on a calm note, with a subtle bullish tilt. Minimal trades were executed across the long end of the curve.
The average yield declined at the short (-5bps), mid (-5bps), and long (-6bps) segments, driven by demand for the 80-day to maturity (-6bps), 129-day to maturity (-6bps), and 339-day to maturity (-6bps) bills, respectively.
Fixed income market analysts revealed that yields moderated slightly across the curve, with long-dated maturities such as 4-Sep, 9- Oct, and 6-Nov maturities recording the biggest declines, each dropping by 6 bps due to significant interest from investors.
Overall, the average benchmark yield declined by 5 bps to close at 25.57%. Analysts said they expect prevailing market conditions to persist in the coming session.
Similarly, the average yield declined by 6 bps to 27.2% in the OMO bills segment. #Nigerian Treasury Bills Yield Shrinks to 25.7% vs Inflation Equities Investors Gain N138bn as Lafarge, VFD Group Rally
