Yield on Nigerian Treasury Bills Climbs 18 Basis Points

Yield on Nigerian Treasury Bills Climbs 18 Basis Points

The average yield on Nigerian Treasury bills climbs by 18 basis points on Thursday amidst a slowdown in financial system liquidity, according to market data.

Inflation rate slowdown would likely keep yields on fixed-income securities on gyration mode, analysts told MarketForces Africa, adding that robust subscription and low-interest rate environment are also downside risks to upward repricing.

Due to a drop in liquidity, the average interbank rate climbed by 6.13 percentage points to 13.75% following an increase recorded in both the Open Buy Back rate and Overnight rate.

Data from the FMDQ platform shows that open buy back increased 600 basis points to close at 13.50%. The overnight lending rate expanded by 625 basis points to 14.0% in the absence of significant inflows into the system

Alpha Morgan said in a report that Treasury Bills Market Activities at the NTB secondary market traded on a bearish note following a 15 basis points expansion in the long end of the curve.

Consequently, the average yield climbed by 18 basis points to close at 5.29%. Likewise, the federal government of Nigeria bond market recorded a bearish outturn.

In the bond space, the bearish tone saw 5 basis points, 32 basis points and a basis point increase in the short, mid and long ends of the curve, respectively.

Consequently, the average yield edged higher by 15 basis points to close at 11.36%. Also, the Eurobond market traded on a bullish note following decreases across all the instruments. In sum, the average yield dipped further by 12 basis points in the space to close at 6.50%

Across the benchmark curve, Cordros Capital reported that the average yield was unchanged at the short and mid segments but declined at the long (-6bps) end as investors bought up the 336 day to maturity (-50bps) bill.

Elsewhere, the average yield at the open market operations (OMO) segment expanded by 5 basis points to 6.4%. Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 14bps to 11.3%.

Across the benchmark curve, average yield closed higher at the short (+19bps) and mid (+33bps) segments as investors sold off the JAN-2026 (+49bps) and MAR-2027 (+70bps) bonds, respectively; the average yield pared at the long (-1bps) end due to the demand for the MAR-2050 (-14bps) bond.

Read Also: Treasury Bill Yield Slowdown as Investors Position for Auction

Yield on Nigerian Treasury Bills Climbs 18 Basis Points