Nigeria Treasury Bills Yields Ease Ahead of Midweek Auction
Investors’ whetted appetites dragged the average yield on Nigerian Treasury bills down by 15 basis points, according to a market update released by Afrinvest Securities Limited.
The average yield closed the trading session in the secondary market last week at 17.6% ahead of the midweek auction. A slew of analysts diverge on spot rate expectations due to excess liquidity in the financial system and disinflation.
Investment analysts said last week that trading in the Nigerian Treasury Bills secondary market was bullish, driven by robust system liquidity. The excess liquidity level in the financial system stood at ₦6.19 trillion as of Wednesday, 1st April 2026, despite OMO actions.
Afrinvest fixed-income market analysts reported that demand for short-term government securities rebounded, reflecting renewed investor appetite for these instruments.
Consequently, the average yield in the local market declined by 15bps week on week to 17.61%, from 17.76% in the previous week. A closer look shows that activity at the long end of the curve remained bullish, with notable movements in yields.
This was particularly evident in the 17-Dec-2026 and 10-Dec-2026 maturities, which recorded significant yield declines of 95bps and 83bps, respectively, leading to an average yield contraction of 29bps at the long end of the curve.
Meanwhile, performance at the short and mid segments was mixed, with average yield changes of +3bps and -5bps, respectively.
On behalf of the Central Bank, the Debt Management Office (DMO) is scheduled to offer N700 billion in bills at the Nigerian Treasury Bills auction on Wednesday.
The offer will include 91- (N100bn), 182-(N100bn), and 364-Day (N500bn) tenors to refinance maturing bills worth N356.47 billion Beta Glass Earnings, Margin Surge on Industrial Transformation
