In the secondary market, the average yield on Nigerian Treasury bills decreased somewhat to 23% as the country’s inflation rate continued to rise. The consumer price index increased 24 basis points to 34.19% in June, the level observed 28 years ago, according to the most recent statistics released by the statistics office.
Treasury investors expanded their holdings at the short end of the curve, while trade at the long end of the curve was minimal, even though the financial market normally responded to hot red inflation conditions.
While analysts continued to predict that inflation would begin to decline in July as a result of base effects on the figure, the optimistic display caused the yield to retrace. In a separate market report, traders stated that on Monday, the average yield fell by 2 basis points in the secondary market to 23.3%.
Cordros Capital Limited explained that the average yield declined in the short (-3 bps), mid (-4 bps), and long (-1 bps) segments. The yield contraction, according to traders, was driven by demand for the 73-day to maturity (-3bps), 164-day to maturity (-4bps), and 311-day to maturity (-6bps) bills, respectively.
Similarly, the average yield dipped by 5 basis points to 24.2% in the OMO bills segment in the secondary market for fixed interest securities, according to the investment firm.
The true yield of the Nigerian Treasury increased for most tenor buckets, indicating heightened investor interest.
