Yields on Nigerian Treasury bills (NTBs) softened slightly in the secondary market as investors adopted a cautious stance ahead of the primary auction scheduled for Wednesday. The average yield on NTBs dipped by one basis point to 18.18 per cent, according to market data from CardinalStone, reflecting subdued trading activity and muted investor participation.
Market participants reported that trading remained relatively quiet on Tuesday, although pockets of transactions were recorded as investors repositioned portfolios in anticipation of fresh supply.
The naira-denominated fixed-income market has been characterised by mixed sentiment, following a significant reduction in Open Market Operation (OMO) rates last week, which has continued to influence yield expectations across standard maturities.
Traders noted that demand for Treasury bills was relatively soft across the curve, contributing to the marginal compression in yields. Balanced demand and supply dynamics kept rates largely unchanged across most maturities.
Activity remained muted across the short, mid, and long ends of the curve, with Treasury bills closing flat across tenors as many investors stayed on the sidelines. This resulted in minimal price movements during the session.
Looking ahead, market participants expect trading to remain calm as attention shifts to the Nigerian Treasury bills auction, where the Debt Management Office is expected to offer ₦1.15 trillion across the 91-day, 182-day, and 364-day tenors.
 softened slightly in the secondary market as investors adopted a cautious stance ahead of the primary auction scheduled for Wednesday. The average yield on NTBs dipped by one basis point to 18.18 per cent, according to market data from CardinalStone, reflecting subdued trading activity and muted investor participation.){kind=link}