The Nigerian Treasury bill market experienced a significant uptick in yields as banks, facing mounting liquidity pressures, resorted to offloading their holdings. This strategic move pushed the average yield on T-bills to 25.64% in the secondary market.
Trading activity was generally subdued, with most actions concentrated at the longer end of the yield curve, particularly for the December bills. The market’s liquidity crunch, exacerbated by a N1.02 trillion deficit in the banking system, tilted the balance in favor of sellers.
While some investors showed interest in 85-day and 337-day maturity bills, leading to slight yield expansions, sell-off pressures dominated the market. The 113-day maturity bill, in particular, saw a significant 115 basis point yield increase as portfolio managers sought to optimize returns.
The December 9, 2025 bill also faced selling pressure, with execution rates hovering around the low 23.00% level.
“Despite some demand for specific papers across the yield curve, selling pressure from liquidity-seeking investors outweighed the buying interest,” said a market analyst. The 10-April maturity bill bore the brunt of this selling pressure, with a 115 basis point yield surge.
In contrast, the 9-October and 6-November papers recorded the sharpest yield declines. Overall, the average benchmark yield climbed 9 basis points to close at 25.64%.
The OMO bill segment also witnessed a slight decline in average yields, contracting by 5 basis points to 27.3%.
