Nigerian Treasury Bills Yield Rises to 17.3% after Auction
The average yield on Nigerian Treasury bills rose 8 basis points to settle at 17.31%, reflecting diminished investor sentiment and a less supportive climate in the secondary market.
Trading in the secondary market was largely mixed and cautious as investors assessed the outcome of the previous day’s primary market action, suggesting a careful approach amid evolving trading conditions.
At the midweek auction, the Central Bank of Nigeria (CBN) strategically allocated around ₦1.01 trillion across the 91-day, 182-day, and 364-day tenors, out of total subscriptions of ₦2.34 trillion.
This strong demand for the 364-day bill underscores a robust interest among investors in longer-term securities. Additionally, the one-year Treasury bill cleared at a yield of 16.73%, up 83 basis points from the previous stop rate.
While secondary market activity has been cautious, there are signs of optimism with some maturities experiencing mild upward repricing.
For instance, the 3-Sept-26 bill rose by 45 basis points to 16.15%. Traders said that although the newly issued 4-Mar-27 bill attracted limited demand and closed at 16.45%, the overall market demonstrates adaptability to changing conditions.
Analysts expect trading to continue to align with available system liquidity, providing a foundation for future developments. #Nigerian Treasury Bills Yield Rises to 17.3% after Auction CBN Injects $300 Million into Forex Market
