Yields on Nigerian Treasury Bills (NTBs) moderated in the secondary market after a significant portion of bids submitted at the midweek primary auction were rejected by the monetary authority, prompting investors to seek allocations in open market trading.
Market data indicated that the average benchmark NTB yield declined by 18 basis points to close at 17.33 percent in the secondary market, reflecting renewed buying interest across the yield curve.
According to market analysts, investors with unmet demand from Wednesday’s Central Bank auction turned to the secondary market to secure positions, particularly along the short, mid, and long maturities.
Fixed-income strategists described trading activity as selective but steady, with investors adopting a cautious yet opportunistic posture amid evolving liquidity conditions.
Analysts at AIICO Capital Limited reported strong buying appetite at the mid-to-long end of the curve. The 07-May-2026 and 04-June-2026 instruments declined by 47 basis points and 45 basis points, respectively, closing at 15.66 percent and 15.71 percent.
Similarly, the 03-December-2026 bill compressed by 46 basis points to 15.64 percent. At the longer end, the 07-January-2027 and 04-February-2027 bills eased by 20 basis points and 11 basis points to settle at 15.75 percent and 15.29 percent. Short-dated maturities remained broadly stable.
The moderation in benchmark rates reflects continued appetite for naira-denominated fixed-income securities.
Strong Auction Demand Despite Rejections
At the primary market auction, the Central Bank of Nigeria offered ₦1.15 trillion across the 91-day, 182-day, and 364-day tenors but ultimately allotted ₦1.91 trillion. Total subscriptions reached ₦4.28 trillion, resulting in a bid-to-cover ratio of 2.2 times — an indication of strong investor demand.
Stop rates declined for the 91-day instrument by 4 basis points to 15.80 percent and for the 364-day bill by 109 basis points to 15.90 percent. The 182-day tenor remained unchanged at 16.65 percent.
In parallel, the secondary market for Open Market Operations (OMO) bills maintained a bullish tone, with the average benchmark yield easing by 1 basis point to 20.55 percent. Analysts expect cautious trading conditions to persist in the near term, with liquidity flows and central bank actions likely to guide yield direction.
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