Nigerian Treasury Bills Yield Falls by 3.5% in Feb.
The average yield on Nigerian Treasury bills declined by about 3.5% in February as a result of increased demand in the secondary market. The rising demand for naira assets followed a change in market dynamics that triggered a positive real return on naira assets.
Nigeria’s inflation rate of 24.48% tracked behind the Central Bank of Nigeria’s (CBN) benchmark interest rate of 27.5%. Hence, investors started locking in profit as spot rates on Nigerian Treasury bills sales at the primary market auction began to reduce.
Last week, fixed-interest securities investors showed special interest for short and long-dated papers amidst liquidity fluctuation in the banking system. However, activity levels slowed toward the end of the week as market players adopted a more cautious stance.
Yields moderated across the curve, with the 10-Apr and 8-Jan maturities seeing the largest declines of 378 bps and 18 bps, respectively, according to TrustBanc Financial Group.
Also, the bullish sentiment on naira assets drove increased demand for January and February 2026 papers, pushing yields lower. However, a lack of significant offers restricted trade volumes, AIICO Capital Limited told investors in a note.
The market experienced buying interest, particularly in the February 5 and February 19 papers, though activity remained subdued. Amidst tight liquidity conditions in the money market, selective trades were executed.
“Investors will continue to reprice yields downwards in line with market dynamics,” analysts said. Across the market segments, the average yield declined by 31 bps to approximately 19.9% in the Treasury bills segment, while it declined by 244 bps to 22.5% in the OMO bills segment.
The average benchmark yield also fell by 348 bps month-on-month, closing at 19.88%, TrustBanc Financial Group Limited said in a note. #Nigerian Treasury Bills Yield Falls by 3.5% in Feb. Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO
