By Boluwatife Oshadiya | August 18, 2026
Key Points
- Average Nigerian Treasury bill benchmark yield rises eight basis points to 18.61%
- October maturities record the sharpest sell-offs, led by the October 8 bill at 73 basis points
- July inflation falls to 15.43%, widening the reported real return to 11.07%
Main Story
Nigerian Treasury bill yields rose to an average 18.61% as investors trimmed positions in the secondary market despite continued moderation in inflation.
CardinalStone Securities Limited reported that selling was concentrated at the short and long ends of the curve, with the short end rising 24 basis points and the long end increasing four basis points.
The sharpest moves were recorded on October maturities. The October 8 bill rose 73 basis points, while the October 15 and October 22 bills increased by 63 basis points and 51 basis points, respectively, reflecting stronger selling pressure on those securities.
Nigeria’s headline inflation slowed to 15.43% in July from 15.91% in June, according to the Consumer Price Index data cited in the market report. The decline represented the second consecutive monthly moderation in inflation.
The combination of a 26.5% monetary policy rate and 15.43% inflation was reported to have widened the real return on investment to 11.07%.
Despite the sell-off, liquidity remained supportive of selective demand across the fixed-income market. AIICO Capital Limited said the newly issued August 12, 2027 Treasury bill closed at 17.40%/17.25%.
In the Open Market Operation segment, the actively traded December 29 bill closed at 19.65%/19.45% as investors sought to lock in relatively attractive yields.
The market report said both equities and debt markets traded lower as investors reassessed available investment opportunities following the Central Bank of Nigeria’s lifting of restrictions on OMO bills.
What’s Being Said
CardinalStone Securities Limited said selling pressure was concentrated at the short and long ends of the Treasury bill curve, with the October maturities recording the largest yield increases.
AIICO Capital Limited reported that the newly issued August 12, 2027 bill closed at 17.40%/17.25%, while the actively traded December 29 OMO bill closed at 19.65%/19.45%.
What’s Next
- Investors will continue to assess Treasury bills against OMO bills as restrictions on the latter ease
- Further inflation data will influence the real-return outlook for short-term fixed-income instruments
- Liquidity conditions and investor positioning will remain key drivers of Treasury bill yields across the secondary market
The Bottom Line:
The rise in Treasury bill yields shows that easing inflation has not eliminated selling pressure in Nigeria’s fixed-income market. With OMO bills offering attractive yields and liquidity still supporting selective demand, investors are continuing to reposition across short-term instruments rather than uniformly increasing Treasury bill exposure.
