Nigerian Treasury bills average yield dropped by four basis points (4bp).
This was as a result of rise in investors asset holdings following the primary market auctions in the previous week.
The interest rate on 364 day Nigerian Treasury Bills was raised by 18 basis points by the Central Bank at the auction sales conducted last week.
The rise in the interest rate was in contrast to the previous rates pricing.
Lost bids at the primary market auction filtered through the secondary market at the beginning as alpha seekers, asset managers maintain search for inflation protected investment options.
Fixed interest securities analysts and market traders said trading activities were low in the secondary market after the auction, though with bullish tilt, driving yield curved downward.
“In its market update, fixed income analysts at Cordros Capital Limited reported that across the curve, the average yield declined at the short (-3bps), mid (-4bps), and long (-5bps) segments.
“The yield contraction was attributed to demand for the 87-day to maturity bills which shed -3bps of the rally. Also, 178-day to maturity bills received investors’ attention, while its yield slumped by -4bps. Also, 325-day to maturity bills were mopped up, causing its yield to dip by 6bps.”
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