The Business NG - January 17, 2025

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Today’s edition delves into the heightened activity in Nigeria’s T-bills market, driven by investors seeking refuge amidst soaring inflation. December 2024 data revealed the country’s headline inflation rate reaching 34.8%, igniting a surge in demand within the T-bills secondary market.

Despite inflationary pressures, trading concluded on a bullish note, with yields rising across mid, belly, and long ends of the curve. This demand-driven activity resulted in a 12-basis-point drop in the average yield, settling at 25.2%. Key contributions to the yield contraction came from the 72-day (-139bps), 177-day (-2bps), and 331-day (-48bps) maturity bills.

Notably, the 8 January 2026 bill emerged as the top pick, seeing a remarkable 27-basis-point decline in yield. Additionally, widespread investor interest was observed in bills maturing in March, April, May, September, November, and December 2025, reflecting robust demand across the yield curve.

While the mid-to-long ends thrived, the shorter end of the curve witnessed limited activity, highlighting a strategic preference for longer-dated instruments amidst inflationary headwinds.