Yield on Nigerian Treasury Bills Declines to 17.5%
The average yield on Nigerian treasury bills declined to about 17.5% in the secondary market on Wednesday due to increased demand for naira assets.
The bullish sentiment led to yield contractions across the board, notably in the 05-NOV (-20bps) and 22-APR (-25bps) papers. Accordingly, the average yield compressed by 2bps to 17.47%.
Trading activity remains subdued across most maturities, as investors have adopted a cautious approach, leading to selective buying interest.
The only notable movement was recorded at the mid-end of the curve, where the 05-Nov-26 bill declined by 16bps to 16.14%, indicating slight buying interest.
Elsewhere, yields remained unchanged across short- and long-term maturities, suggesting balanced demand and supply dynamics, AIICO Capital Limited said in an investor’s note.
Fixed-income market analysts expect a similar sentiment in the next session, as market participants are likely to maintain a cautious approach to trading. Banking Index Jumps as Investors Rotate Fund to ETI, FCMB