Yield on Nigerian Treasury Bills Falls Ahead of Auction
The average yield on Nigerian Treasury bills yield fell in the secondary market due to pre-auction demand by investors seeking to lock in profit. The average yield declined by 4 baiss points (bps) to 19.24% as market participants actively bid across the curve haead of Central Bank of Nigeria (CBN) primary market auction (PMA) on Wednesday.
Trading activities were focused on mid-to-long tenors – June 2025, Sept 2025, Mar 2026- while some sell side actors anticipated higher yields at midweek auction. Demand have been relatively stabilise amidst expectation that inflation will continue to decline while the monetary authority will maintain status quo on benchmark interest to avoid capital outflows.
In its note, Cordros Capital Limited told investors that the average yield declined at the short (-1bp), mid (-1bp), and long (-1bp) segments. The yield contraction witnessed on the curve was driven by demand for the 72-day to maturity (-1bp), 170-day to maturity (-1bp), and 331-day to maturity (-2bps) bills, respectively.
Conversely, the average yield expanded by 9bps to 22.6% in the OMO segment. Fixed income market analysts said traders are likely to remain cautious as attention shifts to the NTB auction.
On behalf of the CBN, the Debt Management Office is scheduled to offer ₦700 billion across the 91, 182, and 364-day papers. This is likely to keep trading subdued in the secondary market, as participants channel their attention toward the auction. #Yield on Nigerian Treasury Bills Falls Ahead of Auction
