Nigerian Treasury Bills Rally, Yield Dips 5bps
The average yield on Nigerian Treasury bills dipped by 5 basis points to close at 25.18% in the secondary market. The yield adjustment followed the latest buying interest in naira assets ahead of the midweek auction as market participants continued to selectively invest at attractive levels.
On behalf of the Central Bank of Nigeria, CBN, the Debt Management Office, DMO, is scheduled to conduct another Treasury bills auction on Wednesday.
With investors’ healthy appetites, fixed income market analysts expect subscriptions to be strong despite liquidity pressures in the banking system.
The Treasury bills market opened the week on a calm note with a slight bullish tilt. Market analysts at AIICO Capital Limited observed a general bias leaning towards the bulls. The investment firm said in a note that demand was primarily focused on the March, December 2025, and January 2026 bills.
Nonetheless, the number of executed trades was limited, even as there were only a few matching offers from those looking to take advantage of the low yields to sell off their holdings.
Hence, yields moderated slightly across the curve, with the 4-Dec and 8-Jan maturities recording the biggest declines, both dropping by 6 bps, TrustBanc Financial Group Limited told investors in a note.
Trading activity, however, remained subdued, with only a few trades consummated during the session. Overall, the average benchmark yield receded by 5 bps to close at 25.18%.
The average yield declined at the short (-5 bps), mid (-5 bps), and long (-6 bps) segments, Cordros Capital Limited said in an update.
The contraction in yield followed demand for the 66-day to maturity (-5bps), 171-day to maturity (-5bps), and 353-day to maturity (-6bps) bills, respectively. Similarly, the average yield declined by 7 bps to 28.3% in the OMO segment. #Nigerian Treasury Bills Rally, Yield Dips 5bps Presidential Council Introduces Regulatory Impact Assessment
