By Boluwatife Oshadiya | April 14, 2026
Key Points
- Average T-bills yield declines to 17.40% in secondary market
- Strong demand observed across short and mid-tenor instruments
- Inflation data expected to influence yield direction
Main Story
Yields on Nigerian Treasury bills declined marginally to 17.40% in the secondary market as investors increased demand ahead of the release of inflation data expected this week.
Market participants reported a 3 basis point drop in average yields, driven by sustained buying interest across the short and belly segments of the yield curve. The demand follows recent primary market auctions where the Central Bank of Nigeria signalled a downward adjustment in spot rates across mid- and long-term maturities.
The secondary market opened the week on a positive note, with rejected bids from primary auctions filtering into the market and supporting price increases. Treasury bills maturing in April 2027 recorded the strongest demand, with yields declining by 9 basis points.
Across the curve, yields eased by between 2 and 3 basis points, reflecting improved investor sentiment and expectations of potential monetary easing signals.
Analysts note that the direction of yields will largely depend on upcoming inflation data from the National Bureau of Statistics, with projections suggesting a possible reversal of recent disinflation trends.
The Issues
Rising global oil prices linked to geopolitical tensions are complicating Nigeria’s inflation outlook, potentially limiting the pace of yield declines despite strong domestic demand for fixed-income instruments.
What’s Being Said
“The sustained demand in the T-bills market reflects liquidity conditions and expectations that rates may have peaked in the near term,” said a fixed-income trader at a Lagos investment bank.
“However, inflation risks remain elevated, which could constrain further yield compression,” the trader added.
What’s Next
- Release of Nigeria’s inflation data expected this week
- Possible repricing of yields based on inflation outcome
- Continued investor positioning in short-duration instruments
The Bottom Line: Falling T-bills yields signal strong liquidity and demand, but inflation risks and global pressures could limit further declines.
