Yields on Fixed Interest Securities Retreat ahead of CBN Auction

Yields on Fixed Interest Securities Retreat ahead of CBN Auction

The average yields on fixed interest securities backtracked on Monday as market participants turned up in a bullish mood ahead of Central Bank of Nigeria’s Treasury bills primary market auction on Wednesday.

Amidst tight liquidity in the financial system, there was a slowdown in demand for Federal Government bond instruments last week, forcing higher spot rates across tenored.

Pressures by debit for the Debt Management Office auction, and CBN FX auction, the overnight lending rate was unchanged at 16.5%, according to market data.

In the secondary market for trading treasury bills, there was a strong bullish sentiment in the space as investors seek higher returns in the debt capital market. READ:Equities market indices retreat as investors’  dump pricey stocks 

Traders told MarketForces Africa that the average yield dipped by 20 basis points to 10.1% from 10.3% on Monday.

Across the curve, Cordros Capital analysts said in its market note that the average yield contracted at the short (-1bp), mid (-1bp), and long (-53bps) segments.

Market analysts hint that the decline in yield curve came following interests on the 94-day to maturity (-1bp), 185-day to maturity (-1bp), and 325-day to maturity (-261bps) bills, respectively.

Elsewhere, the average yield pared by one basis point to 10.2% in the OMO bills segment.

In the bond market, trading activities also closed on a bullish note.  The average yield contracted by two basis points to 14.1%, according to analysts’ notes.

Across the benchmark curve, Cordros Capital stated that the average yield declined at the short (-5bps) end as investors demanded the JAN-2026 (-15bps) bond.

The average yield closed flat at the mid and long segments, market reports reviewed by MarketForces Africa stated.

# Yields on Fixed Interest Securities Retreat ahead of CBN Auction#

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