Yield on Nigerian Treasury Bills Rises to 23.5%

Trading activities on Nigerian Treasury bills switched to sell side in the secondary market as inflation reversed downtrend after two consecutive month-on-month deceleration.

Fixed interest securities traders offloaded treasury bills holding across the short, belly and long term end of the curve the Apex Bank slashed spot rates on one year bills at the main auction last week.

Inflation which printed at 32.70% has further widened real return on investment due to reversal in the latest consumer price index.

The market saw minimal selling interest across specific maturities. The average mid-rate for the benchmark Treasury bills papers increased by 43 basis points to 23.5%.

In its market update, analysts at Cordros Capital Limited reported that across the curve, the average yield dipped at the short (-1bp) and mid (-2bps) segments.

According to the investment banking firm, the yield contraction was driven by demand for the 72-day to maturity (-2bps) and 163-day to maturity (-2bps) bills, respectively.

On the other, the yield curve expanded at the long (+94bps) end due to profit-taking activities on the 219-day to maturity (+178bps) bill. Elsewhere, the average yield contracted by 2bps to 25.9% in the OMO bills segment ahead of CBN auctions. #Yield on Nigerian Treasury Bills Rises to 23.5%

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