Ahead of the midweek auction, investors trimmed their Treasury bill portfolios in the secondary market to boost liquidity. Analysts at TrustBanc Financial Group noted that an initial bullish sentiment on selected papers gave way to selling pressures as market participants repositioned in anticipation of the auction.
The Central Bank of Nigeria (CBN) plans to offer approximately ₦583 billion worth of Treasury bills at the upcoming primary market auction.
During the previous auction, the Debt Management Office (DMO) maintained spot rates for short- and medium-term tenors, while the long-term tenor saw a rate adjustment. The 364-day bill, which attracted significant demand, experienced a 50-basis-point increase in its rate, rising to 23.50% from 23%.
Market analysts reported bearish trends in the secondary market as investors shifted focus to the auction. Sell-offs pushed the average yield on Treasury bills up by 30 basis points to 25.4%, according to a note from Cordros Capital Limited.
Across the curve, the average yield rose at the short (+31 bps) and medium (+81 bps) segments, driven by sell-offs in bills with 65 days (+143 bps) and 170 days (+120 bps) to maturity. Conversely, the long end of the curve saw a modest decline of 2 basis points, fueled by buying interest in the 324-day-to-maturity bill. Most activity was centered on the 20 November 2025 paper, with trades occurring at around 22.00%.
In contrast, the average yield in the Open Market Operation (OMO) bills segment contracted by 2 basis points to 27.0% in the secondary market.
