Nigerian Treasury Bills Yield Shrinks to 20.6% Ahead of Auction
Ahead of the midweek auction, investors are currently earning an average of 20.5% as yield on Nigerian Treasury bills, trading data from the secondary market revealed. Last week, the Nigerian Treasury Bills secondary market maintained a bullish tone throughout, Afrinvest Limited said in an investor note, buoyed by strong demand across the curve and firm system liquidity.
Fixed income market analysts said activity was most pronounced on the newly issued 1-year paper (04-Jun-26), which opened the week with aggressive bids before slight resistance led to moderated offers midweek.
The investment hinted that buying interest extended across short- and mid-tenor bills, driving yields notably lower on the 04-Sep-25 and 04-Dec-25 papers.
Consequently, the average benchmark yield declined by 30 bps week on week to settle at 20.58%. Traders said the short and mid ends of the curve witnessed significant demand, with the 04-Sep-25 and 04-Dec-25 papers recording yield declines of 29bps and 32 bps, respectively.
Meanwhile, the newly issued 1-year paper (04-Jun-26) saw persistent interest throughout the week, trading as low as 18.60% before settling around 19.10%/18.85% amid some investor resistance.
Analysts said overall, sentiment remained broadly positive, with investors locking in yields ahead of the next auction. The Debt Management Office, on behalf of the Central Bank is scheduled to conduct a Primary Market Auction (PMA), with ₦27.1 billion in maturing bills. The DMO will offer a total of ₦162.01bn across the 91-day, 182-day, and 364-day tenors.
