The average yield on Nigerian Treasury bills fell as investors increased their portfolios with short-term securities following disinflation. The market had responded unfavorably to the turnaround in headline inflation following two months of slowdown.
Investors sold naira assets throughout the short, belly, and long ends of the curve as negative interest yields extended after September inflation spike news.
According to fixed interest securities specialists, trade in the Treasury bill secondary market finished on a positive note on Thursday. Due to market purchasing interest, the average yield fell 3 basis points to 23.5%.
In its market update, Cordros Capital Limited said the average yield contracted at the short (-1bp), mid (-2bps), and long (-6bps) segments,
Fixed income analysts said the yield contracted following buying interests in the 84-day to maturity (-1bp), 175-day to maturity (-2bps), and 217-day to maturity (-48bps) bills, respectively.
Conversely, the average yield expanded by 12 basis points to 26.0% in the OMO bills segment in the secondary market at the same time.
The Treasury bill market experienced bearish sentiments due to a persistent liquidity crunch, AIICO Capital Limited said in its note. Analysts said most activity was concentrated on the February and September 2025 maturities, with the former trading at a discount of over 23.00%.
