Yield Rises As Investors’ Cash Out Nigerian T-bills

The average yield on Nigerian Treasury bills inched higher following sell pressures on short-dated instruments amidst loads of uncertainties in the economy.

Consequently, the average secondary market yield on T-bills rose to 1.62 per cent due to selling pressure on the 9 Mar 2023 and 30 Mar 2023 T-bills.

Industry analysts have projected that the yield curve would shift upward this week on expectation of a lower liquidity level in the financial system.

In the money market, short-term benchmark rates nosedived after debit for the previous auction that triggered funding pressures which drive local banks with liquidity to begin to request high rates.

Traders said short-term benchmark rates, such as the open repo rate (OPR) and the overnight lending rate, increased 25 basis points to 10.75 per cent and 39 basis points to 11.20 per cent respectively despite inflows from OMO maturities.

The financial system liquidity level was boosted by N60.00 billion from OMO Bills that matured and remained un-refinance by the apex who is facing a crisis on new naira notes.

Activities in the Treasury bills secondary market were bearish, as the average yield expanded by 19 basis points to 1.62 per cent.  Across the curve, analysts said the average yield expanded at the short (+41bps) end due to profit-taking on the 23-day to-maturity (+187bps) bill.

On the other hand, the average yield on T-Bills closed flat at the mid and long segments. Similarly, the average yield expanded by 81 basis points to 2.1 per cent in the OMO bills segment.