Nigerian Treasury Bills Yield Clears at 19% ahead of Auction
The average yield on Nigerian Treasury bills cleared around 19% in the secondary market due to selloffs amidst a declining inflation rate. The market opened the week on a calm note with mixed sentiments.
A slew of fixed income market analysts expect yields to moderate, suggesting heated demand for naira assets will have commensurate impacts on returns. “While demand emerged for selected papers across the yield curve, it was offset by selling pressure from investors seeking to raise liquidity amid a system liquidity deficit of over 700 billion,” TrustBanc Financial Group Limited told investors in a note.
The 5-Feb (-4bps) maturity saw the sharpest decline in yield, while the 6-Nov (+93bps) bill recorded the biggest jump, the investment firm said. On the day, the average benchmark yield advanced by 13bps to close at 19.01% ahead of the midweek auction.
There were activities at the long end, particularly the 12 Mar 2026 paper, where a few trades were executed—investors have been showing preference for longer tenors across the market lately.
Traders observed that rates dipped slightly after the release of February 2025 inflation data, which showed a 130 basis points decline to 23.18% year-on-year. “We expect a cautious tone in the near term as investors remain on the sidelines ahead of Wednesday’s NTB auction,” AIICO Capital Limited told investors in a note.
The average yield contracted at the short (-3bps) and mid (-1 bps) segments, Cordros Capital Limited said. The yield contraction was driven by the demand for the 52-day to maturity (-3bps) and 157-day to maturity (-9bps) bills, respectively.
However, yield expanded the long (+22bps) end due to the selloff of the 234-day to maturity (+93bps) bill. In contrast, the average yield declined by 4bps to 22.4% in the OMO segment.
On Wednesday, the Central Bank of Nigeria will open N800 billion worth of Treasury bills for subscription as part of its liquidity management efforts. # Nigerian Treasury Bills Yield Clears at 19% ahead of Auction PZ Cussons Minority Shareholders Reject Debt-to-Equity Conversion
