Investors Trim Nigerian Treasury Bills Holding, Yield Shifts
Trading activity in Nigerian Treasury bills was negative in the secondary market despite a robust liquidity balance in the financial system. With the bearish undertone on the naira asset, reflecting low investor ’appetite following sharp downward spot rates repricing at the main auction recently conducted by the Apex Bank.
Bear traders dominated activities in the secondary market despite robust liquidity, as mid- to long-tenor papers such as the 08 Jan 2026, 07 May 2026, and 04 Jun 2026 saw yields rise by up to 14 bps.
Sources told MarketForces Africa that deposit money banks were not adding more Treasury bills to their books, and asset managers were noted to begin to consider offloading amidst an approximately 36% year-to-date return in the equity market.
Sellers were active across the curve, but overall, demand remained weak. Traders reported that few maturities recorded slight declines, leaving the average benchmark yield 3 bps higher at 17.75%. Investors’ sentiment is expected to align with the robust system liquidity.
Due to sell pressures seen across the curve on Thursday, the average yield slightly expanded by a basis point to 17.78%, Cordros Capital Limited said in a report. Analysts explained that across the curve, the average yield contracted at the short (-4 bps) end, as investors bet on Nigerian Treasury bills maturing in 84 days whose yield dipped by -27 bps.
The market saw sell pressure, which pushed yield at the belly of the curve higher by +3 bps. This happened as investors reduced interest in Nigerian Treasury bills maturing in 161 and 308 days.
At the OMO bills segment, the average yield expanded by 4 bps to 24.7% as the market anticipates the Central Bank will likely float an auction to mop up excess liquidity of more than N1.5 trillion in the banking system. #Investors Trim Nigerian Treasury Bills Holding, Yield Shifts Foreign Investors Increase Bets on Nigeria’s Eurobonds, Rates Ease
