By Boluwatife Oshadiya | March 31, 2026
Key Points
- Average Treasury bills yield declines by 9bps to 17.67%
- Strong investor demand follows CBN’s rejection of excess bids
- Long-dated instruments record the sharpest yield compression
Main Story
Nigerian Treasury bills yields declined in the secondary market on Monday, as sustained investor demand drove a post-auction rally across maturities.
Average yield fell by 9 basis points to 17.67%, reflecting bullish sentiment following last week’s primary auction, where the Central Bank rejected excess subscriptions despite robust liquidity conditions.
Buying interest was observed across the curve, with the long end recording the steepest contraction at 16bps, while short- and mid-tenors eased by 2bps each. Notably, December 2026 and January 2027 papers saw aggressive demand, with yields compressing by as much as 82bps and 49bps respectively.
The rally follows a heavily oversubscribed auction in which the CBN offered ₦400 billion but received ₦2.89 trillion in bids, largely concentrated in the 364-day instrument. Stop rates declined slightly on longer tenors, reflecting improved macro sentiment and expectations of disinflation.
What’s Being Said
“Investors are locking in yields now as expectations build around a potential moderation in rates later in the year,” said a fixed income trader at a Lagos investment bank.
“The combination of strong liquidity and positive real returns is keeping demand elevated,” the trader added.
What’s Next
- Secondary market activity likely to remain bullish in the near term
- Investors will track inflation data and policy signals from the CBN
- Next primary market auction expected to test demand sustainability
The Bottom Line: Treasury yields are trending lower as demand intensifies, signalling strong investor confidence in naira assets and expectations of a gradual shift in the interest rate cycle.
