Nigerian Treasury bills average yield experience decrease as portfolio investors became more interested in naira assets.
Despite the negative interest rates and concerns about inflation, there is an increase in demand on the secondary market for bills with a maturity duration of 24 days and 171 days. Demand for long dated bills was relatively quiet.
“In the OMO bills space, a similar pattern was observed. Investors’ appetite for OMO bills improved following lost bids at primary market auction conducted last week. Due to the bullish sentiment, as the average yield declined slightly, down by 2 basis points to 21.7%”, according to traders.
The yield stayed flat at the long end. Similarly, the average yield dipped by 4 basis points to 21.4% in the OMO bills segment in the secondary market.
In the money market, pressures in the financial system persisted. Due to level of liquidity pressures, short term benchmark interest diverged.
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