Treasury Bills Yield Falls as Investors Refill Lost Auction Bids
Nigerian treasury bills (NTB) yield fell in the secondary market after more than half of the total subscription at the midweek auction was rejected by the authority.
However, sustained interest in the naira curve drove investors into the secondary market to fill their unmet demand at the Central Bank primary market auction on Wednesday.
The average benchmark yield declined by -18bps to close at 17.33% in the secondary market, according to Anchoria Securities Limited, with analysts noting investors’ position across the short, belly, and long end of the curve.
Fixed income market analysts reported selective demand, which drove modest rate declines across key maturities. Market activity was relatively measured, with participants maintaining a cautious but opportunistic stance.
Analysts at AIICO Capital Limited said buying interest was observed across the mid- to long-end of the curve, with the 07-May-26 and 04-Jun-26 bills declining by 47bps and 45bps to close at 15.66% and 15.71%, respectively.
Similarly, the 03-Dec-26 bill compressed by 46bps to 15.64%. At the long end, the 07-Jan-27 and 04-Feb-27 bills eased by 20bps and 11bps to settle at 15.75% and 15.29%, respectively, while most short-dated maturities closed broadly unchanged.
Consequently, the average benchmark rate declined while analysts expect a cautious tone to persist, guided by liquidity conditions
The CBN offered ₦1.15 trillion at the midweek auction but allotted ₦1.91 trillion across the 91-day, 182-day, and 364-day instruments.
Demand was robust, with total subscriptions amounting to ₦4.28 trillion with a bid-to-cover ratio of 2.2x. Stop rates moderated for the 91-day (-4bps to 15.80%) and 364-day (-109bps to 15.90%).
Stop rate on the 182-day bill was left unchanged at 16.65%. Similarly, the secondary market for OMO closed with a bullish tilt as the average benchmark yield declined by -1bp to close at 20.55%. NB Plc. Boosts Earnings, Settles FX Debt with Rights Issue
