Treasury Bills Market Rally as Investors Keep Eyes on Yield
In the secondary market, fixed interest securities investors continue to heat up trading activities on Nigerian Treasury bills due to elevated yields across the short, belly, and long ends of the curve.
The average yield on Treasury bills instrument slowed down to 24% on Tuesday as investors increased position across tenors. Elevated yield on borrowing instrument keeps demand for treasury bills coming even with inflation acceleration.
Also supporting the rally in the secondary market is the improvement in liquidity level in the financial system. Investors continue to seek investment options to park their funds on the notion that it costs money to keep money.
In their separate reports, fixed income market analysts said activity leaned towards a bullish trend on Tuesday, supported by strong liquidity in the system. Market participants displayed interest treasury bills maturing in January, April, May, and October 2025, AIICO Capital Limited said in a note.
As a result, the average mid-rate for the benchmark Nigerian Treasury bills dropped by 18 basis points. Across the curve, the average yield declined at the short (-1bp), mid (-2bps), and long (-2bps) segments.
The yield contract across tenors was due to demand for the 86-day to maturity which shed a basis points. The market also experienced demand for 177-day to maturity bills, causing its yield to fall by -2bps while buy interest in 331-day tot maturity dragged its yield down by 2bps.
Similarly, the average yield dipped by 2 basis points to 26.0% in the OMO bills segment, according to Cordros Capital Limited. # Treasury Bills Market Rally as Investors Keep Eyes on Yield Naira Rises against US Dollar Ahead of Sept. FX Auction
