Nigeria Treasury Bill Average Yield has experienced a drop of 5.09%.
The result is a yield of 19.91%.
The reduction is as a result of strong buy sentiment across short, mid and long tenors. It follows a sustained buying in the secondary market.
“With the inflation messing with the value of naira, there is reduction in demand for short time investment instrument. This partly support yields inversion in the fixed interest securities market. Cowry Asset Management Limited note to investors.”
The reduction in demand of the treasury bill leads to the drop in the yield from 25% to 19.91 despite the CBN spot rate repricing.
“In its market update, Cowry Asset Management told Investors that the Nigerian Interbank Offered Rate (NIBOR) declined by 28 percentage points to 30.58% on Monday.
“The investment firm stated that the decline indicates availability of liquidity in the system. But the short term benchmark interest rate moved on the negative sides.”
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