Yield on Nigerian Treasury Bills Rises to 25.4%
The average yield on Nigerian Treasury bills rose by 4 basis points to 25.4% in the secondary market due to mild selling pressures that occurred at the belly of the curve, according to Cordros Capital Limited.
The sell-down move came after the midweek primary market auction by the Debt Management Office, where N515 billion worth of Treasury papers was sold to investors at a reduced discount rate on one-year bills.
Traders said in their report that the money market witnessed improved activities as unmet bids from the main auction conducted on behalf of the Central Bank filtered into the market, supported by ample liquidity and attractive yields.
Profit-taking by market players from auction winnings was met with heightened demand, particularly for the newly issued 364-day paper, which drove its secondary market yield lower to around 22% levels, according to TrustBanc Financial Group Limited.
AIICO Capital Limited noted strong demand for the new 1-year bill maturing on January 8, 2026. Analysts explained that investors who lost out at yesterday’s auction sought to fill their unmet bids, which exerted downward pressure on the yield of the 1-year bill.
Across the curve, the average yield declined at the short (-2 bps) and long (-2 bps) ends. The yield contraction was driven by demand for the 91-day to maturity (-2bps) and 315-day to maturity (-2bps) bills, respectively.
Meanwhile, analysts at Cordros Capital Limited noted that yield expanded at the mid (+23bps) segment following sell pressures on the 147-day to maturity (+121bps) bill. The average yield pared by 1bp to 27.9% in the OMO segment. £Yield on Nigerian Treasury Bills Rises to 25.4% Cryptocurrencies Market Cap Rises as Bitcoin Pops Higher
