Nigerian Treasury Bills Yield Falls to 17.39% on Disinflation
The average yield on Nigerian Treasury bills fell slightly as investors maintained buying momentum via secondary market transactions, a demand surge influenced by reactions to disinflation.
The real interest rate inched higher to about 9% after inflation rate fell to 18.02%, as per statistics office’s latest consumer price index update for Sept.
With disinflation, the market expects the monetary authority to axe the benchmark interest rate to pave the way for private sector-driven economic growth.
Banks are still holding to their portfolio given the surplus liquidity level in the financial system, while the market anticipates lenders’ earnings will be reduced by the interest rate cut.
The Treasury Bills secondary market exhibited divergent trends on Wednesday, with short- to medium-term 1-month, 3- month, and 6-month yields dropping 1 bp, 4 bps, and 6 bps, respectively.
Notably, the 8-Oct-2026 bill saw a modest decline, resulting in 8 bps rate decrease in its rate to 15.48%, while 17-Sept-26 saw rates increase to 15.55% (+4 bps).
Traders said ample liquidity in the financial system is expected to sustain positive investor sentiment. Despite these varied movements, the average Nigerian Treasury Bills yield declined 1 bp to 17.37%, reflecting sustained bullish sentiment and strong investor demand in the secondary market.
Across the curve, the average yield contracted at the short (-1 bp), mid (-1 bp) and long (-1 bp) segments, according to sampled analysts’ notes.
The yield contraction was driven by demand for the 75-day to maturity (-1bp), 155-day to maturity (-1bp) and 358-day to maturity (-12bps) bills, respectively. Conversely, the average yield expanded by 4bps to 20.5% in the OMO segment. Nigeria’s Disinflation Signals Renew Investors Confidence, Consumer Relief
