T-Bills Yield Falls as Unmet Bids, Rates Hike Trigger Demand
The average yield on Nigerian Treasury bills (NTB) bumped to 21% in the secondary market as investors sought to fill unmet bids at the recently concluded primary market auction.
The market recorded demand for new bills sold to investors in the primary market as banks and portfolio managers continue to play actively in the bills market. Due to the bullish momentum, the average yield contracted by 8 bps to 21.1%.
Across the curve, the average yield declined at the short (-1bp), mid (-1bp) and long (-14 bps) segments, according to Cordros Capital Limited. Fixed income market analysts said the yield contraction was driven by demand for the 91-day to maturity bills (-1bp), 182-day to maturity bills (-1bp) and 315-day to maturity bills (-162 bps), respectively.
Similarly, the average yield contracted by 4 bps to 29.3% in the OMO bills segment in the secondary market. Further details revealed that trading activity in the Treasury bills market was primarily driven by NTB auction results.
While demand focused on the 26 Mar 2026 paper, the newly issued 1-year NTB (09 Apr 2026) saw no offers from auction winners despite strong market appetite, AIICO Capital Limited explained.
The auction itself recorded robust demand, with total subscriptions reaching N1.126 trillion against N800 billion that was offered, though only N424.576 billion was allotted.
The stop rate for 91-day bills rose 50 bps to 18.50%, while rates for 182-day bills climbed by 100 bps to 19.50%, respectively. The CBN held spot rate for 364 day at 19.63
Buying interest was mostly skewed towards the long end of the curve, particularly the newly issued 364-day paper, which saw notable demand and a subsequent drop in its secondary market yield. #T-Bills Yield Falls as Unmet Bids, Rates Hike Trigger Demand Oil Headwinds Pose Risks to Nigeria’s Current Account Balance
