October 22, (THEWILL) — Yields on Nigerian Treasury bills and Federal Government bonds fell across most maturities last week, reflecting renewed investor demand and improved liquidity in the fixed-income market.
The decline follows a period of cautious trading, as investors adjust their portfolios in anticipation of moderating inflation and sustained monetary easing.
Data from the secondary market showed that average T-bill yields dropped by several basis points across short- to medium-term maturities, driven by robust demand from institutional investors and banks seeking safer assets amid lingering uncertainties in the equities market.
Similarly, benchmark bond yields trended lower as buying interest persisted, particularly in the 2027, 2031, and 2038 maturities.
Market analysts attribute the decline to improved system liquidity and expectations that the Central Bank of Nigeria (CBN) may maintain a less aggressive tightening stance in the near term.
The moderation in yields also signals renewed investor confidence in government securities, given the relatively stable naira performance and sustained participation by local investors.
However, traders cautioned that the outlook remains sensitive to inflationary trends and fiscal borrowing pressures, which could influence yield direction in the coming weeks.
Overall, the fixed-income market sentiment remains positive, with investors positioning for steady returns amid a stable monetary environment.
Ogochukwu Onwaeze
