Investors Rush Nigerian Treasury Bills amidst Inflation Concerns
Trading activities in the Treasury bills secondary market ended on a bullish note even when the data show that Nigeria’s headline inflation rate accelerated to 34.80% in December.
Investors increased their portfolio holdings in the secondary market, and as such, yield rose across the mid, belly, and long ends of the curve. Transactions were positive throughout and heated up further when data revealed inflation for December rose.
Hence, the average yield contracted 12 basis points to 25.2%. Across the curve, the average yield contracted at the short (-21 bps), mid (-2 bps), and long (-11 bps) segments.
The yield contraction was due to demand for the 72-day to maturity (-139bps), 177-day to maturity (-2bps), and 331-day to maturity (-48bps) bills, respectively. Substantial trading activity was recorded on the longer end of the curve, particularly for the 8 January 2026 bill, which garnered the highest level of interest.
Fixed income market analysts said the 8-Jan maturity recorded the biggest decline in yield, dropping by 27 basis points. Traders selectively engaged across the yield curve, with significant interest observed in the March 2025, April 2025, May 2025, September 2025, November 2025, December 2025, and January 2026 bills.
In contrast, the shorter end of the curve demonstrated limited activity due to a pronounced bid-ask spread, AIICO Capital Limited said in a note. Consequently, the average benchmark yield receded by 4 bps to close at 25.40%. Traders expect prevailing market conditions to persist, albeit at a moderate pace, as market participants’ trade in line with liquidity levels.
Whereas, the average yield remained unchanged at 28.4% in the OMO bills segment in the secondary market. #Investors Rush Nigerian Treasury Bills amidst Inflation Concerns FBN Holdings Records Huge Off-Market Shares Transactions
