Yields on Nigerian Treasury Bills (NTBs) declined to 17.76% ahead of the Central Bank of Nigeria’s (CBN) highly anticipated interest rate decision and a ₦290 billion primary market auction scheduled midweek.
Investor sentiment in the fixed-income market remained cautious, with trading activities muted early in the week as traders awaited fresh policy direction from the CBN’s Monetary Policy Committee (MPC). Market watchers say spot rate expectations are now firmly tied to the outcome of this critical policy meeting.
Despite subdued activity, the Treasury Bills yield curve saw a downward shift, driven by modest demand across key maturities. The average secondary market yield dropped 6 basis points, settling at 17.76%, according to Cordros Capital. Yield contractions were seen across the short (-2bps), mid (-3bps), and long (-9bps) segments of the curve.
In particular, demand was concentrated on bills maturing in 66 days (-3bps), 171 days (-6bps), and 248 days (-33bps), reflecting cautious optimism among investors. The Open Market Operation (OMO) bills segment mirrored this trend, with average yields dipping by 6 basis points to 24.6%.
Last week’s market trend showed a mixed tone at the start, with liquidity tightness dampening buying interest. However, improved system liquidity later in the week triggered a buying spree that pushed yields lower across several tenors. Afrinvest Limited, in its weekly commentary, reported a 22 basis point drop in average benchmark yields.
Bullish momentum was most evident on short- and mid-term instruments. Treasury bills maturing on 4-Dec-2025 and 8-Jan-2026 recorded the most notable repricing, while 7-Aug-2025 and 6-Nov-2025 bills also drew significant investor interest.
Meanwhile, longer-dated maturities remained relatively subdued, as investors remained cautious due to uncertain liquidity dynamics and impending monetary policy signals.
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