The average yield on Nigerian Treasury bills dipped to 25.6% in the secondary market on Tuesday, as investors turned their focus to the midweek primary market auction.
Market activity showed moderate interest in the 04 December 2025 Treasury bill and select long-dated Open Market Operation (OMO) papers. However, traders adopted a cautious approach, awaiting the outcome of the Central Bank of Nigeria’s (CBN) scheduled auction.
Amid increased demand, yields across the curve eased, with the 10-April 2025 paper recording the most significant drop, falling by 75 basis points. Overall, the average secondary market yield moderated by 0.06% to settle at 25.64%, according to data from TrustBanc Financial Group.
Analysts predict a cautious trading session on Wednesday as market participants prepare for the Debt Management Office’s (DMO) auction, which will offer N275.71 billion worth of Treasury bills across 91-day, 182-day, and 364-day maturities.
While the auction is expected to draw strong interest due to high demand for naira-denominated assets, analysts warn that weak liquidity conditions in the money market could limit subscription levels.
As of Tuesday, local deposit money banks had already accessed N1.54 trillion in short-term funding to address liquidity constraints.
The anticipated oversubscription reflects ongoing confidence in naira assets, but liquidity concerns may shape the dynamics of the upcoming auction. Market observers will closely monitor the results to gauge the broader implications for yields and market performance.
