Chamwe Kaira
Yields on all Treasury Bills (TBs) declined in the third quarter of 2025, reflecting adequate liquidity and lower benchmark rates, according to the Bank of Namibia.
Local TB yields fell quarter on quarter during the period due to strong liquidity, oversubscription at auctions, a softer monetary policy stance, and lower South African benchmark rates. Yields on the 91-day and 182-day TBs dropped by 26 basis points and 20 basis points to 7.40% and 7.57%, respectively.
By the end of September 2025, yields on longer-dated TBs also declined. The 273-day TB fell by 30 basis points to 7.50%, while the 365-day TB decreased by 22 basis points to 7.48% compared with the previous quarter.
Despite the decline, TB rates remained well above inflation, allowing investors to earn positive real returns during the quarter.
Most government bond yields also eased in the third quarter, except for the GC45. Yields on the GC32, GC37 and GC40 declined by 30 basis points, 20 basis points and 10 basis points to 9.29%, 10.97% and 11.40%, respectively.
The fall in bond yields was linked to ample market liquidity, lower inflation, softer South African benchmark yields and strong demand against limited government bond supplies. In contrast, the GC45 yield increased slightly by 5 basis points to 11.76%.
Equity markets strengthened during the quarter. The NSX Overall Index rose by 7.57% to close at 1 922.77 points at the end of September 2025. The Local Index increased by 4.44% to 759.47 points.
The gains in the Overall Index tracked global market performance. In the region, the JSE All Share Index rose by 11.94% to 107 940 points.
The increase was driven by commodity-linked shares, mainly gold and platinum, supported by steady global economic conditions and easing inflation concerns.
Total market capitalisation stood at N$2.49 trillion at the end of September, up 6.98% from the previous quarter due to higher share prices. On an annual basis, market capitalisation decreased by 2.90%.
Sector indices for basic materials, financials, telecommunications and real estate increased by 24.3%, 0.3%, 0.5% and 5.1%, closing at 688, 604, 283 and 2 265 points, respectively.
Consumer staples and consumer discretionary indices declined by 1.1% and 23.4% to close at 1 329 points and 2 577 points at the end of the quarter.
Caption
Yields on all Treasury Bills edged lower in the third quarter of 2025.
- Photo: Contributed
