Nigeria Treasury bills yield experienced 45 basis points loss in May.
The crash in the treasury bill is as a result of increased buying interest spurred by the rate repricing in the primary market aucton.
“ARM Securities analysts, said the Nigerian Fixed Income (FI) market reversed its bearish trend in May 2024, buoyed by increased liquidity. The latest rally suppressed yield, which had climbed near 25%. Analysts said. The Treasury bills market ended with the average yield dropping 48bps to 21.72% from more than 22% in April”.
The high policy rate is pushing up yields across the fixed-income market as investors seek higher yields on their investments.
“The fixed income market is adjusting to the increase in policy rate, which reached unprecedented heights due to persistent inflationary pressures.”
The Central Bank of Nigeria (CBN) has made investment in Treasury bills lucrative for some individuals, corporates and especially deposit money banks
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