T-Bills Yield Rises on Sell Pressures, Naira Gains

T-Bills Yield Rises on Sell Pressures, Naira Gains

The average yield on Nigerian Treasury bills adjusted upward midweek amidst sell pressures in the secondary market. Meanwhile, the Nigerian naira holds strong today at the Investors and Exporters foreign exchange window.

Today, the official exchange rate appreciated by 0.1% to N420.25 per the United States dollar amidst a decline in external reserves. In the money market, short term rates inched higher amidst pressures on the financial system liquidity.

Data from FMDQ Exchange shows that the overnight lending rate expanded by 83 basis points to 8.3%, a movement that Cordros Capital attributes to significant funding pressure on the system.

Meanwhile, trading activities in the Treasury bills secondary market were bearish, traders said the average yield expanded moderately today, rising by three basis points to 4.0%.

Across the curve, Cordros Capital analysts stated that the average yield expanded at the short (+7bps) and mid (+1bp) segments as market participants sold off the 78-day to maturity (+30bps) and 141-day to maturity (+7bps) bills, respectively.

However, the average yield closed flat at the long end. Elsewhere, the average yield remained flat at 4.4% in the open market operations (OMO bills) segment. READ: T-Bills Yield Slides 7bps as Spot Rate on 364-Day Falls

In the bond market, trading activities in the Federal Government of Nigeria (FGN) bonds secondary market were mixed.  Traders said that market traded with a bearish tilt while the average yield expanded by a basis point to 11.1%.

Analysts said in the market report that across the benchmark curve, the average yield expanded at the short (+3bps) end as investors sold off the JAN-2026 (+9bps) bond; but closed flat at the mid and long segments. # T-Bills Yield Rises on Sell Pressures, Naira Gains