Nigeria Treasury Bills Yield Steadies Ahead of Auction
The average yield on Nigerian Treasury bills settled at about 26% in the secondary market amidst investors changing sentiments. Trading activities were mixed, though pattern revealed strong appetite for naira assets persisted.
Traders said market traded on a subdued note throughout the week, influenced by tight system liquidity. Banks sold part of the investment in securities to reduce liquidity pressure in the money market.
Due to tight funding level, the short-term benchmark interest rates inched higher ahead of expects inflows from Federal Accounts allocation committee. Fixed income securities analysts spotted moderate transactions across the curve, with subdued trades at the mid-to-long end, particularly for December 2025 securities.
Offers were observed on the May, October, November, and December 2025 papers, though demand remained weak, according to AIICO Capital Limited. In the just concluded week, some players took advantage of attractive levels, while others sold to address system liquidity deficits.
Towards the end of trading session last week, mild demand was recorded in the 11 Dec 2025 paper ahead of Debt Management Office primary market auction this week.
Notably, the 9-Oct and 6-Nov maturities recorded the steepest declines in yield, dropping by 13bps and 14bps, respectively, TrustBanc Financial Group told investors in a note.
In contrast, the 6-Mar and 10-Apr maturities recorded the biggest jumps, advancing by 20bps and 104bps, respectively. The DMO is scheduled to offer N332.52 billion across standard maturities to investors at its main auction sales on Wednesday.
Across the market segments, the average yield remained unchanged at 25.7% in the Treasury bills segment but expanded by 6bps to 27.3% in the OMO bills segment, Cordros Capital Limited said.
Analysts anticipate a liquidity influx into the system will likely drive demand for instruments, causing a decline in yields in the secondary market. # Nigeria Treasury Bills Yield Steadies Ahead of Auction Equities Investors Gain N1.06T as Financial Stocks Rally
