In the secondary market, average yields on Nigerian Treasury bills declined by five basis points (bps) to 25.2%, fueled by heightened demand across short-, mid-, and long-term papers. Investors increased portfolio holdings ahead of Wednesday’s primary market auction.
Analysts observed significant buying interest, particularly for longer-dated Treasury bills, including the November 2025 instruments, as market participants positioned for inflationary pressures following the CBN’s recent hike of the Monetary Policy Rate to 27.50%.
Despite improved liquidity, trading volumes remained thin, with limited transactions recorded. TrustBanc Financial Group noted that the 6-March and 9-October maturities experienced the steepest yield declines during the week.
Cordros Capital Limited reported that yields contracted across all market segments: short (-5 bps), mid (-5 bps), and long (-6 bps). Specific bills with 80-day, 129-day, and 325-day maturities saw yield declines of -5 bps, -6 bps, and -6 bps, respectively. Meanwhile, in the secondary market for Open Market Operation (OMO) bills, the average yield dropped by 22 bps to 27.0%.
CBN’s Liquidity Management Plan
As part of its fourth-quarter liquidity management strategy, the Central Bank of Nigeria (CBN) is set to conduct a primary market auction on Wednesday, a move that is expected to shape market conditions in the coming weeks.
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