Investors upped their bets on Nigerian Treasury bills in the secondary market ahead of the primary market auction on Wednesday. The Central Bank of Nigeria (CBN), through the Debt Management Office (CBN), will offer investors approximately N82 billion in Treasury instruments at today’s primary auction.
Analysts anticipate continued strong demand for fixed-interest products in the debt capital market. The disadvantage, according to fixed income analysts, is the financial system’s low liquidity level.
Though liquidity improved yesterday, short term benchmark interest rates ended in mixed note, above 32%. Traders reported that he treasury bills market ended on a bullish note on Tuesday investors took positions ahead of tomorrow’s auction.
Analysts at AIICO Capital Limited said there was little demand for the 25 Sept 2025 Bill towards the close of the market. The average yield declined by 1bp to 22.9%, Cordros Capital Limited said in a note. The investment firm stated that the average yield declined at the short (-1bp), mid (-1bp) and long (-2bps) segments.
This was as a result of demand for the 79-day to maturity (-1bp), 170-day to maturity (-2bps), and 352-day to maturity (-2bps) bills respectively.
Similarly, the average yield declined by 5bps to 24.5% in the OMO segment, according to the investment note.
