Nigeria’s treasury bills market witnessed a marginal decline in yields on Wednesday, despite subdued trading in the secondary market. The drop was driven by investor positioning ahead of the Central Bank of Nigeria’s (CBN) ₦230 billion treasury bills auction.
Market activity showed a bullish undertone, particularly at the long end of the curve, where yields fell by 7 basis points. Overall, average yield eased by 3 basis points to close at 18.08%.
Traders noted that interest was mainly focused on short-term Nigerian Treasury Bills (NTBs) maturing in November and December, as well as a few Open Market Operations (OMO) maturities dated 6-Jan, 17-Feb, and 7-Apr.
Despite limited transactions, investors remained attentive to the auction outcome, with expectations that unsuccessful bids would spill into the secondary market. The auction attracted strong demand, recording total subscriptions of ₦396.42 billion, out of which ₦303.79 billion was allotted.
Stop rates moved higher for two tenors: the 91-day bill closed at 15.35% (+35bps), while the 364-day paper advanced to 17.44% (+94bps). The 182-day instrument held steady at 15.50%.
Analysts predict a mixed to mildly bearish session in coming days as investors react to the upward revision in stop rates, potentially shifting demand away from lower-yielding papers to more attractive options.
Segment-wise, the short (-1bp) and long (-7bps) ends of the curve saw yield contractions, particularly on the 78-day (-1bp) and 302-day (-24bps) maturities. The mid-segment remained flat due to minimal trades.
In the OMO bills segment, yields declined by 3bps to 24.8%, mirroring increased investor appetite.
