Nigerian Treasury Bills Yield Drops to 25.6%
Ahead of inflation data, the average yield on Nigerian Treasury bills slumped in the secondary market to 25.6% due to buying interest.
The treasury bills market ended on a bullish note at the beginning of the week after spot rate cuts at the primary market auction conducted by the Central Bank last week.
Treasury bills market rallied as investors sought to take positions amidst expectation that inflation will decline for the first time in a long time.
Broadstreet analysts projected a moderate decline in consumer price index as a result of base effects on the figure starting from July reading.
Investors demand caused the average yield to dip by 17bps to 25.6%. Across the curve, the average yield declined at the short (-4bps), mid (-5bps) and long (-30bps) segments, according to Cordros Capital Limited.
The yield contraction was driven by buying interests in the 87-days to maturity bill whose yield declined by -5bps. The market also saw demand around the belly of the curve.
Investors showed interest in 150-day to maturity bills, causing its yield to reduce by -6bps while demand for 192-day to maturity bills dragged its yield down by 201bps.
Conversely, fixed income securities analysts said the average yield increased by 4bps to 26.2% in the OMO bills segment in the secondary market on Monday. #Nigerian Treasury Bills Yield Drops to 25.6%
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