Yields on Nigerian Treasury bills edged lower in the secondary market, declining by three basis points to an average of 17.72% as investors modestly increased exposure to naira-denominated assets ahead of upcoming 2026 auctions.
The treasury bills market has undergone notable repricing following adjustments by the Central Bank of Nigeria across short-, medium-, and long-term tenors at its December primary market auctions.
While market participants had expected easing inflation trends to lead to lower spot rates, the monetary authority surprised investors by raising discount rates, reinforcing its resolve to maintain the attractiveness of naira assets.
Fixed-income analysts now anticipate that this policy stance will persist into the first quarter of 2026, supporting broader monetary objectives and sustaining foreign and domestic investor interest in the local debt market.
Secondary market trading closed on a mildly bullish note, with yield compression observed across parts of the curve. The most pronounced movement was recorded on the 17-Dec paper, where yields fell by 13 basis points.
Despite the modest rally, overall activity remained limited. Analysts at AIICO Capital Limited noted that most outstanding treasury bills closed unchanged, reflecting subdued participation and balanced demand-supply conditions in the absence of major market catalysts.
The 17-Dec-2026 bill emerged as the sole notable gainer, with yields declining by six basis points to 16.82%, signalling mild demand for longer-dated instruments. Other maturities, including the 08-Jan-2026, 19-Feb-2026, and 03-Dec-2026 papers, closed flat at 15.32%, 16.98%, and 16.85%, respectively.
In aggregate, the average yield across the Nigerian Treasury bills market declined by three basis points to settle at 17.72%.
