Yields on Nigerian Treasury bills fell in the secondary market as investors moved to lock in profits ahead of the upcoming primary market auction (PMA) by the Central Bank of Nigeria (CBN) on Wednesday.
The average yield declined by 4 basis points (bps) to 19.24%, driven by strong pre-auction demand.
Market activity was concentrated on mid-to-long tenor bills—maturing in June 2025, September 2025, and March 2026—while some traders anticipated higher yields at the midweek auction. Investor sentiment has remained stable amid expectations that inflation will continue to decline and that the CBN will maintain its current benchmark interest rate to prevent capital outflows.
According to Cordros Capital Limited, the average yield declined across the short (-1bp), mid (-1bp), and long (-1bp) segments. The most significant demand was observed for bills maturing in 72 days (-1bp), 170 days (-1bp), and 331 days (-2bps).
Conversely, yields in the Open Market Operations (OMO) segment rose by 9bps to 22.6%, reflecting cautious sentiment among traders. Analysts expect market participants to remain watchful as focus shifts to the NTB auction.
The Debt Management Office, on behalf of the CBN, is set to offer ₦700 billion across 91-day, 182-day, and 364-day tenors. This is expected to keep secondary market trading subdued as investors await auction results.
