CBN Rate Cut Triggers Yield Slump As Investors Chase Long-term Securities

The Central Bank of Nigeria’s (CBN) 350-basis-point cut in the Monetary Policy Rate (MPR) has triggered a broad decline in fixed-income yields, prompting investors to shift towards longer-term securities to lock in prevailing returns before further repricing.
The Financial Markets Dealers Association (FMDA) said the development reflected growing expectations of further interest rate moderation, as market participants repositioned their portfolios in response to the lower-rate environment.
The shift was particularly evident at the recent Treasury bills auction, where demand was strongest for the 364-day instrument. The tenor recorded a bid-to-cover ratio of 13.65 times, highlighting st...