Treasury Bills Investors Step Up Buying Action Ahead of Q1 Auction
The Nigerian Treasury market rallied as investors began to build portfolio amidst changing macroeconomic indicators and hope that the monetary easing will begin in 2026.
Inflation rate has been on decline but policy rate stayed in double digit high of 27%, widening real return on investment. The Apex Bank, has, surprisingly being offering premium on risk free short term investment securities.
The trend is projected to persist as the authority continue to attract local and foreign portfolio investors into the financial market.
In the secondary market on Monday, trading activities ended on a bullish note, driven by sustained buying interest across the mid- to long-dated maturitie.
The rally was supported by an ample liquidity in the financial system. Data obtained by MarketForces Africa indicated that system liqudity remained bouyant with banks rising placements with the Central Bank.
Buying actions were observed on the Nigerian Treasury bills that will expire on 19-Mar-2026, and 21-May-2026. These investment securities recorded rate compressions of 8bps, and 14bps, respectively, according to AIICO Capital Limited.
Fixed income market analysts at the investment firm said the rally was more pronounced at the longer end, as the 09-Jul-26 to 05-Nov-26 papers saw sharp discount rate declines ranging between 25bps and 48bps, with the 22-Oct-26 bill closing at 16.24% (45bps).
Short-dated bills were largely unchanged, reflecting limited activity at the front end. Consequently, average NTB rates declined by 14bps. The market is anticipated to trade in line with system liquidity in the near term. #Treasury Bills Investors Step Up Buying Action Ahead of Q1 Auction#
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