Nigeria T-Yield Falls to 17.76% Ahead of Rate Decision
The Nigerian Treasury bill yield fell to 17.76% ahead of the benchmark interest rate decision and midweek auction. On behalf of the Central Bank of Nigeria (CBN), the debt office is scheduled to float N290 billion worth of Nigerian Treasury bills on Wednesday.
Spot rate expectations will depend on the outcome of the CBN monetary policy committee meeting, several fixed income market analysts told MarketForces Africa. The Treasury Bills market started the week subdued as traders awaited the monetary committee meeting and Wednesday’s Treasury bills auction. Trading activities were limited as investors awaited market signals from the CBN rate decision.
With mild buying interest, the Treasury Bills curve posted declines across most maturities. Despite these movements, the secondary market remained largely subdued, as the average yield fell by 6 basis points to settle at 17.76%. Across the curve, the average yield contracted at the short (-2 bps), mid (-3 bps), and long (-9 bps) segments, according to Cordros Capital Limited.
The yield contraction was driven by the demand for the 66-day to maturity (-3 bps), 171-day to maturity (-6 bps), and 248-day to maturity (-33 bps) bills, respectively. Similarly, the average yield contracted by 6 bps to 24.6% in the OMO segment, Cordros said.
Last week, the Nigerian Treasury Bills (NTB) secondary market traded with a broadly mixed tone at the beginning of the week, as early sessions reflected cautious sentiment driven by tight system liquidity.
Improved liquidity conditions spurred a reversal in the market’s tone during the week, with late buying interest driving yields lower across most maturities. Consequently, the average benchmark NTB yield declined by 22 bps week on week, according to investment banking firm Afrinvest Limited.
Specifically, bullish momentum was more pronounced at the mid- and short ends of the curve, where renewed demand drove significant repricing. The 4-Dec-25 and 8-Jan-26 papers saw the steepest yield declines amid sustained buy interest.
Similarly, the 7-Aug-25 and 6-Nov-25 bills attracted strong bids, reinforcing the positive tone across the curve. Meanwhile, the long end remained relatively quiet, with investors maintaining a cautious stance on duration amid evolving liquidity dynamics. MPC: Analysts Differ on Monetary Easing, Rule Out Interest Rate Hike
