The average yield on Nigerian Treasury bills increased further in the secondary market as selloffs continued across all standard maturities traded. According to AIICO Capital Limited, short and mid-dated papers saw increased selling demand due to restricted market liquidity.
While fixed income securities dealers remarked that the market remained tranquil, a small number of transactions were reported with a pessimistic undertone following the spot rate price drop at the Central Bank of Nigeria’s (CBN) major auction last week.
The market has failed to restore purchasing enthusiasm, despite the fact that the inflation rate reversed its previous downward trend due to a rise in petrol pump prices in Nigeria. According to Cordros Capital Limited, the average yield increased modestly by 1bp to 23.6%.
According to the investing business, the average yield fell throughout the curve at both the short (-1bp) and long (-2bps) ends. Demand for 22-day and 330-day bills drove the yield reduction (-2bps and -2bps, respectively).
However, sell pressure pushed yield higher down the curve’s belly. Analysts observed that the yield increased in the mid (+10bps) category owing to the sell-off of the 162-day to maturity (+77bps) bill.
Cowry Asset Limited said that the Nigerian Interbank Treasury Bills True Yield (NITTY) increased across all maturities, while the average secondary market yield on T-bills jumped by 0.02%, finishing at 23.56% owing to sell-sentiment. At the OMO bill secondary market, the average yield dipped by 2bps to 25.8% ahead of primary market auctions.
