Nigeria's T-bills yield increases to 25.3%

The average yield on Nigerian treasury bills rose in the secondary market due to sustained negative trading, a move triggered by risk off sentiment, on naira asset amidst nationwide protest.

Investors trimmed interest following price action on 364-day at the primary market auction conducted last week.

At the auction, the Central Bank of Nigeria (CBN) reduce rate on one year bill just after adjustment to monetary policy rate.

Then, the market reacted, resulting in selling spree on Naira bills which lifted yield curve above 25%. Again, the secondary market closed on a bearish note on Thursday as selloffs persisted amidst expectation of yield repricing.

Fixed interest securities traders reported that the average yield on Nigerian Treasury bills expanded by 14 basis points to 25.3%.

In its market note, Cordros Capital Limited told investors that across the curve, the average yield contracted at the short (-1bp) and mid (-2bps) segments.

Fixed income securities analysts said the yield curve backpedaled as investors demanded the 84-day to maturity, causing its yield to bump by one basis point.

The market also saw increase demand for 175-day to maturity bill (-2bps). Conversely, the average yield advanced at the long (+31bps) end driven by sell pressure on the 266-day to maturity (+213bps) bill.

Elsewhere, the average yield declined by 2bps to 25.3% in the OMO segment in the secondary market, traders said.