The average yield on Nigerian Treasury bills dipped slightly due to buy-side activity in the secondary market. The mixed trading sentiment came as the Debt Management Office (DMO) geared up to conduct a primary market auction on behalf of the monetary authority, offering approximately ₦610 billion in 91-day, 182-day, and 364-day maturities.
Market insiders observed subdued activity in the Treasury bills secondary market, with investors adopting a cautious stance ahead of the midweek auction. Transactions were driven largely by sellers seeking to boost liquidity, with significant trading focused on long-term notes. Notably, the November 2025 bills were traded at approximately 22.30%.
The average benchmark yield for Treasury bills declined slightly across the curve, with reductions of 1 basis point (bp) in the short segment, 2 bps in the mid, and 2 bps in the long segment. Analysts linked the yield contraction to sustained demand for short-term bills nearing maturity, particularly the 79-day (-2bps), 170-day (-2bps), and 338-day (-2bps) notes.
Overall, the average benchmark yield settled at 24.29%. However, the OMO (Open Market Operation) bills segment saw a contrasting trend, with the average yield climbing by 79 bps to close at 27.1%.
Analysts expect a calm trading session ahead of the Treasury bills auction as market participants await fresh signals from the primary market.
