Nigerian Treasury Bills Yield Drops to 16.89% after Auction
Investors increased bets on Nigerian Treasury bills in the secondary market, reflecting sustained demand for the naira assets after the midweek main auction. The average yield declined below 17% due to post-auction trading reactions.
Activities closed on a positive note as investors with failed bids returned to the secondary market to boost their portfolio holdings. The bargain hunting dragged yields across the belly and long end of the curve lower ahead of a possible interest rate cut.
The Central Bank conducted a Treasury bills auction where N700 billion was the offer size across 91-day, 182-day and 364-day maturity bills. However, the CBN oversold by clearing over 98.0% of bids out of about N1.3 trillion subscriptions reported by the authority.
The CBN allotted ₦1.09 trillion across maturities. Investors reacted positively in the secondary market after the CBN kept rates on 91-day bills at 15.30% and sold 182-day bills at 15.50%, and the 364-day attracted a 16.04% discount rate.
Trading activities in the secondary market was quiet on the short-term bills, while the mid- to long-term bills saw mixed reactions. The rate on a Nigerian Treasury bill that will mature in June 2026 fell by 68 bps to 15.52% in the market.
Return on Nigerian Treasury bills with August 2026 maturity dropped 30 bps to 15.50%. Treasury bills with Sept 3 2026 expiration rate reduced by 14 bps to 15.49%, and the 17 Sept 2026 bills rate edged lower by 12 bps to 15.48%
However, 04-Jun-26 and 18-Jun-26 saw rate increases of 3 bps (15.56%) and 2 bps (15.55%), respectively. Overall, average yields declined by 6 bps to settle at 16.89%. GTCO Slides Amidst Multiple Block Transactions
