Yield on Newly Issued TBills Declines to 21% on Sharp Demand
The yield on newly issued Nigerian Treasury bills declined sharply in the secondary market due to increased demand from investors with failed bids. On Thursday, the Treasury bills space experienced heightened activity, driven by the outcome of Nigerian Treasury bills auction on Wednesday.
Due to significant appetite for long dated instrument, the stop rate for the 1-year paper saw a substantial decline of 82.2 bps, closing at 21.80%. Midweek auction results showed the rates for the 91-day and 182-day papers held steady at 18.00% and 18.50%, respectively.
The huge unmet bid worth about N2 trillion filtered into the secondary market as investors sought where to park the returned funds. Hence, the secondary market witnessed strong demand for the newly issued paper maturing on 22 January 2026 on Thursday.
The one year Treasury bills yield dropped by about 100 bps, pushing its secondary market yield lower to around 21% levels. Furthermore, strong demand was observed for the December 2025 and 8 January 2026 bills.
Investment firm Cordros Capital Limited said across the curve, the average yield contracted at the short (-33bps), mid (-2bps) and long (-2bps) segments.
The yield contraction was driven by demand for the 28-day to maturity (-188bps), 182-day to maturity (-2bps) and 350-day to maturity (-2bps) bills, respectively. Similarly, the average yield dipped by 22bps to 28.2% in the OMO segment.
Consequently, average yield contracted by 9bps to 25.0%, according to Cordros Capital Limited. #Yield on Newly Issued TBills Declines to 21% on Sharp Demand Enugu to Establish 340 Green House Technology Farms
