Yield Declines to 23% as Nigerian Treasury Bills Rally
The average yield on Nigerian Treasury bills declined slightly to 23% in the secondary market as the inflation rate accelerated further. The latest data from the statistics office showed that the consumer price index rose 24 basis points to 34.19% in June, the level seen 28 years ago.
While financial market adjusted generally to hot red inflation conditions, treasury investor increased their positions at the short, belly with moderate trading at the long end of the curve.
The bullish display caused yield to backtrack while analysts maintained that inflation will start to decline in July due to the impacts of base effects on the figure. Traders said in their separate market report that the average yield contracted by 2 basis points on Monday in the secondary market to 23.3%.
Cordros Capital Limited explained that the average yield declined in the short (-3 bps), mid (-4 bps), and long (-1 bps) segments. The yield contraction, according to traders, was driven by demand for the 73-day to maturity (-3bps), 164-day to maturity (-4bps), and 311-day to maturity (-6bps) bills, respectively.
Similarly, the average yield dipped by 5 basis points to 24.2% in the OMO bills segment in the secondary market for fixed interest securities, according to the investment firm.
The true yield of the Nigerian Treasury increased for most tenor buckets, indicating heightened investor interest. #Yield Declines to 23% as Nigerian Treasury Bills Rally Dangote Refinery, Fertilizer Coy to Be Listed in Q1 2025
