Fixed-income investors are ramping up their exposure to Nigerian Treasury bills in the secondary market ahead of this week’s auction, where the Central Bank of Nigeria (CBN) will offer ₦513.43 billion in maturing bills. However, trades have been limited by wide bid-offer spreads, according to traders.
TrustBanc Capital Limited reported that yields on specific Treasury papers, including those maturing on 6 March and 8 May, saw significant drops of 47 and 150 basis points, respectively, as buying interest pushed yields lower. On average, Treasury bill yields contracted by 27 basis points, with short, mid, and long-term segments witnessing notable declines.
In the OMO bills market, a similar trend emerged, with average yields dipping by 6 basis points to 26.2% following strong trading activity. Analysts anticipate robust investor demand at the upcoming auction, though the CBN’s response to the bidding volume remains uncertain.
Banking sector liquidity started the week strong at ₦375.53 billion, contributing to stable money market rates. As a result, the open repo rate fell to 19.22%, while the overnight rate edged up slightly to 19.69%. Market analysts continue to assess the balance between market dynamics and recent spot rate shifts on one-year bills.
