Nigerian Treasury Bills Yield Falls to 17.41% Ahead of Auction
The average yield on Nigerian Treasury bills fell to 17.41% in the secondary market ahead of the midweek auction. The average yield on Treasury bills continues to track below 18.02% inflation rate.
Nigeria’s inflation rate is anticipated to improve with market guidance targeting at least a 50 basis point decline in the consumer price index. Consumers price stability will support the monetary policy committee to axe the benchmark interest rate.
A further reduction in inflation figure will lift real interest rate above 9%. The market anticipate spot rates adjustment as the Central Bank of Nigeria (CBN) is scheduled to open N650 billion Treasury bills for subscription at the primary market on Wednesday.
The treasury bills market closed relatively muted with a bullish undertone, as participants accumulated papers at the tail end of the curve, causing -13bps drop in yield.
The buying interest on long duration masked sell pressures at the short-end (+9bps) of the curve. Accordingly, the average yield contracted by 5bps to reach 17.41%, CardinalStone Securities Limited said in an investors’ note.
Treasury bills yield contraction occurred due to strong liquidity that fuel demand for naira assets and broad-based buying that compressed yields across maturities.
The 3-Sept-2026 bill led declines, dropping 17 bps to 15.75% ahead of the CBN primary market auction worth ₦650 billion. In the OMO space, the CBN allotted ₦273.60 billion at 21.69% and 21.84%. Crude Oil Prices Surge on Demand, Supply Imbalance
