Nigerian Treasury Bills Yield Drops to 17.72%
The Nigerian Treasury bills yield dropped by three basis points to 17.72% in the secondary market as investors increased the naira asset ahead of the 2026 auction.
The local treasury bills market has seen significant adjustment following the Apex Bank rates repricing across the short, belly, and long durations in its December auctions.
The market had anticipated disinflation would cause spot rates to be priced lower, but surprisingly, the authority hiked discount rates against expectations.
Fixed income market analysts are now expecting the trend to persist in Q1 2026, reflecting the decision to make the Nigerian treasury bills market remain attractive to support monetary actions.
In the secondary market, trading activities closed on a slightly bullish note as yield declines were observed across the curve, particularly the 17-DEC (-13 bps) paper.
Fixed income market analysts spotted minimal activity across the curve. Analysts at AIICO Capital Limited said in a note that most outstanding bills closed unchanged, reflecting subdued trading interest and balanced demand-supply dynamics in the absence of major market catalysts.
Notably, the 17-Dec-26 bill was the only paper to record a marginal gain, as yields declined by 6bps to close at 16.82%, indicating mild demand for the long end of the Nigerian Treasury bills curve.
All other maturities, including the 08-Jan-26, 19-Feb-26, and 03-Dec-26 papers, closed flat at 15.32%, 16.98%, and 16.85%, respectively. Overall, the average yield across the bourse declined by 3 bps to close at 17.72%. Lafarge Africa Delivers 90% Return, Recommends for Dec. Upside
