Yields on Nigerian Treasury Bills (NTBs) recorded a marginal decline this week as cautious trading dominated the fixed-income market ahead of the country’s latest inflation report. Market data showed that the average yield slipped by 1 basis point to settle at 17.39% in the secondary market.
Although liquidity conditions remained relatively tight, the market displayed a slightly bullish tone, supported by bargain-hunting activities across selected maturities. Traders said investors were reacting to recent spot rate adjustments observed in the mid and long segments of the yield curve, while mixed investor sentiment limited the intensity of demand.
Analysts noted that expectations of continued disinflation, driven by relative stability in food prices and the exchange rate, have supported mild optimism in the fixed-income space. However, they warned that recent strike actions, which disrupted oil production and reduced government revenue, could slow economic recovery and affect market direction.
Market liquidity fell further to ₦2 trillion following a series of open market operations (OMO) that withdrew about ₦5.32 billion from the system last week. This tightening in liquidity exerted mild bearish pressure on select fixed-income instruments, though overall sentiment remained steady.
In the NT-Bills market, trading patterns were mixed. Yields declined on the 18-Jun-26 and 08-Oct-26 maturities, while slight upticks were recorded on the 23-Jul-26 and 20-Aug-26 papers.
Across the yield curve, the short and mid segments contracted by 2 bps and 3 bps, respectively—largely driven by demand for the 87-day and 178-day maturities, both of which fell 3 bps. Conversely, the long end of the curve inched up by 1 bp, reflecting sell pressure on the 283-day-to-maturity bill, which climbed 13 bps.
A similar pattern was observed in the OMO segment, where the average yield fell by 7 bps to 20.5%, suggesting renewed investor interest in short-term debt instruments despite limited liquidity.
With inflation data expected later in the week, traders anticipate that the market will remain cautious as investors reassess real yield positions amid evolving macroeconomic indicators.
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