By Boluwatife Oshadiya | November 2, 2026
Key Points
- Average secondary-market Treasury bill yield declined six basis points week-on-week to 17.90% as buying interest strengthened
- Investors submitted ₦1.91 trillion in subscriptions at the latest NTB auction against an ₦800 billion offer, but allotments totalled just ₦71.16 billion
- Stop rates fell by one basis point across the 91-day, 182-day and 364-day instruments to 15.40%, 15.79% and 15.80%, respectively
Main Story
Nigerian Treasury bill yields declined in the secondary market last week as investors increased buying positions, with the average market yield falling six basis points week-on-week to 17.90%, according to Cowry Asset Limited.
Buying interest was concentrated in short- and medium-term instruments, while the longer end of the yield curve recorded some profit-taking and selling pressure. Trading activity remained relatively active across Treasury bills and Open Market Operations (OMO) instruments.
At the latest primary Treasury bills auction, the Central Bank of Nigeria (CBN) offered ₦800 billion across the 91-day, 182-day and 364-day maturities. Total subscriptions reached ₦1.91 trillion, equivalent to 2.38 times the amount offered. However, the CBN allotted ₦71.16 billion, representing a sales-to-offer ratio of 0.09 times.
Stop rates declined by one basis point across all three tenors, settling at 15.40% for the 91-day bill, 15.79% for the 182-day bill and 15.80% for the 364-day bill.
In the secondary market, Herwood Securities Limited reported offer yields of 16.00% on the Treasury bill maturing September 23, 2027, and 15.60% on the October 7 NTB. OMO instruments offered higher yields at selected maturities, including 18.60% on the December 8 instrument and 17.50% and 17.40% on the January 12 and January 26 instruments, respectively.
What’s Being Said
Cowry Asset Limited attributed the decline in average yields to stronger demand for selected instruments amid surplus system liquidity. The firm also said the auction outcome indicated investors were prepared to accept slightly lower yields, supported by liquidity conditions and the risk-adjusted returns available on government securities.
The supplied material contains no verbatim CBN statement or direct quotation from an independent analyst.
What’s Next
- Investors will monitor subsequent CBN Treasury bills auctions for changes in stop rates, subscription levels and allotment decisions
- Secondary-market activity will indicate whether demand for short- and medium-term instruments continues and whether yields moderate further
The Bottom Line:
The combination of strong subscriptions and significantly lower allotments points to substantial investor demand, while declining stop rates suggest increased willingness to accept lower returns. The direction of yields will depend partly on liquidity conditions and the CBN’s approach to accepting bids at future auctions.
