By Boluwatife Oshadiya | March 30, 2026
Key Points
- Average Treasury bills yield declines to 17.76% week-on-week
- Investor demand hits ₦3.1 trillion at primary auction
- Longer-tenor instruments attract strongest buying interest
Main Story
Average yields on Nigerian Treasury bills declined to 17.76% in the secondary market as investor demand intensified, particularly for longer-dated instruments, amid ongoing disinflation trends.
Market data showed a 19 basis points drop week-on-week, driven by increased buying interest at the mid- to long-end of the yield curve. Activity remained relatively subdued early in the week as investors shifted focus to the Central Bank of Nigeria’s primary market auction.
At the auction, the CBN offered ₦400 billion across standard maturities but recorded subscriptions of ₦3.1 trillion—almost eight times the offer size. The apex bank ultimately allotted ₦693 billion, reflecting strong investor appetite.
Stop rates showed mixed movements. The 91-day instrument held steady at 15.95%, while the 182-day and 364-day tenors declined by 20 basis points each to 16.42% and 16.43%, respectively.
“The decline in yields reflects sustained demand, especially at the long end where investors are locking in relatively high returns,” Cowry Asset Management Limited said.
What’s Being Said
“Despite fluctuations, Nigerian Treasury bills continue to provide a hedge against inflation for institutional investors,” Broadstreet analysts noted.
“The demand concentration on the 364-day paper highlights a clear duration preference in the current rate environment,” a fixed-income analyst said.
What’s Next
- Investors are expected to maintain focus on longer-tenor instruments in upcoming auctions
- The next primary market auction could test yield direction amid liquidity shifts
- Inflation data releases will influence near-term yield movements
Bottom Line
The Bottom Line: The sustained decline in Treasury yields signals strong institutional confidence in naira assets, with investors increasingly locking in long-term returns ahead of potential monetary easing.
