Nigerian Treasury Bills Yield Steady at 17.39%, Trade Softens
The Nigerian Treasury bills secondary market continued its bullish momentum in today’s session, with the average yield dipping by a basis point to 17.39% on Wednesday from 17.40% yesterday.
The return on the short term borrowing instrument continues to trail Nigeria’s headline inflation rate.
Buying interest was broad-based across the curve, as most maturities declined by 1bp, except for the JUN-26 paper, which saw mild sell pressure, pushing its yield up by 12bps, Meristem Securities Limited said in a note.
A transaction across short, belly and long end of the curve answered to a switch in investors’ sentiment following spot arte adjustment at the main auction last week.
In a note, analysts at CardinalStone Securities Limited said most papers recorded mild yield contractions of around 1bp, reflecting a mild bargain hunting.
The yield contractions were offset by an 11bps expansion on the 04-Jun paper, the investment firm told investors. As a result, the average yield closed flat at 17.39%.
Across the curve, the average yield contracted at the short (-1bp) and mid (-1bp) segments, Cordros Securities Limited said in its fixed income market update.
The yield direction was influenced by the demand for the 85 day to maturity (-1bp) and 176-day-to-maturity (-1bp) bills, respectively.
Meanwhile, yield closed flat at the long end due to inactivity. Conversely, the average yield expanded by 10bps to 22.0% in the OMO segment. #Nigerian Treasury Bills Yield Steady at 17.39%, Trade Softens
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