Nigerian Treasury Bills Yield Slides to 20.2%
The average yield on Nigerian Treasury bills slumped marginally in the secondary market, closing at about 20.2%, according to traders note. The fixed interest securities market rallied amidst growing uncertainties, and damaging inflation condition.
As such, the treasury bills traded sideways, with buying interest focusing on the long end of the curve and selling interest observed around the middle of the curve, according to AIICO Capital Limited.
Across the curve, the average yield pared at the short (-3bps), mid (-3bps) and long (-5bps) segments, according to market update from Cordros Capital Limited.
Traders explained that the yield surge on the curve was driven by investors interests in the 80-day to maturity (-3bps), 171-day to maturity (-4bps) and 332-day to maturity (-5bps) bills.
Traders said at the end of the session, the market settled slightly bullish as the average mid-rate declined by 2 bps to 20.18%. In the money market, short term interest rate declined further over robust liquidity level in the financial system.
System liquidity improved further to ₦951.51 billion, up from ₦712.07 billion reported last week Friday, investment banking firm said in separate report.
Consequently, the Open Repo Rate (OPR) declined by 175 bps to 23.50%, while the Overnight Rate (O/N) decreased by 201 bps to 24.03%, as confirmed on FMDQ Securities platform.
Following two times OMO bills auction conducted by the Central Bank of Nigeria last week, the average yield expanded by 57 basis points to 22.3% in the OMO segment in the secondary market due to bearish moves. Electricity Consumers Increase to 12.33m in Q1 2024 – NBS
