Yields Ease as Investors Rotate Capital into Treasury Bills
Trading activity in the Nigerian Treasury bills (NTB) secondary market was mildly positive as investors ramped up naira assets in the absence of a primary market auction.
Investors rotated capital from the equities market, which lost N801 billion due to sell pressure, into the fixed income space, dragging yields on naira assets lower.
The average yield on the Treasury bills eased as investors increased positions across the short term, the belly and long end of the curve after the monetary authority’s decision to keep the policy rate at 26.5%.
The decision to hold rates increased real return on investment across the fixed income market in light of the decelerated headline inflation figure for June, 2026.
T-bills buying action was supported by N3.23 trillion surplus liquidity in the financial system, bolstered by inflows from matured OMO and Treasury bills papers on Monday and Wednesday.
Traders reported investor interest in Nigerian Treasury bills maturing on 15 Jul 2027, which opened with quotes at 17.40%/17.30% before moderating to 17.35%/17.25%.
Additional interest was seen in the 18 Feb 2027, 11 Mar 2027, 20 May 2027, and 17 Jun 2027 bills, quoted at 17.10% offer, 17.00% offer, 17.05% offer, and 17.25% offer, respectively, according to Herwood Capital Limited.
Traders reported yield contractions at the short (-1bp) and long (-3bps) ends, offsetting expansions at the mid (+2bps) segment of the curve. Consequently, the average yield compressed by 1bp to 18.34%.
In the OMO segment, activity was concentrated on the November and December OMO bills, with the 24 Nov 2026 and 8 Dec 2026 OMO bills quoted at 20.10% bid and 19.40% bid, respectively. Offers remained scarce, while demand persisted. NGX Index, Market Cap Slump as Equities Investors Lose N801bn
