Nigerian Treasury Bills Yield Unshaken by Inflation Expectation
The average yield on Nigerian Treasury bills closed steady in the secondary market on Tuesday, reflecting the mix of softer trading activity and selective positioning.
Investors took profit at the short and belly of the curve and acted as core drivers of trading activities, but there were selective buying actions for long durations.
Investors maintained a positive appetite for investment securities with longer tenors, while there was portfolio rebalancing action on short and mid tenors.
The market is adjusting ahead of inflation data amidst expectations of a significant spike that can distort the fixed income market mechanism – reflecting a sharp reversal from the spot rates repricing that started in the fourth quarter of 2025.
In its market update, AIICO Capital Limited revealed buying interest was evident at the long end, particularly on the 7-Jan-2027 bill, where the discount rate declined by 11 basis points to close at 17.83%, reflecting improved demand for longer-dated papers.
However, sell pressure emerged at the mid-tenor segment, with the 7-May-26 bill recording a notable rate increase of 49 bps to close at 16.54%.
With a strong liquidity level in the financial system, the treasury bills market will continue to stay strong, as banks have no reason to trim their holdings to maintain portfolio balance.
The overall average yield remained unchanged at 18.02%, racing ahead of Nigeria’s latest inflation record. #MTN Nigeria Rallies to Record High on Renewed Investor Confidence
