Yields on Nigerian Treasury bills fell by three basis points (bps) in the secondary market on Thursday, following renewed buying interest from investors who missed out on the Central Bank of Nigeria’s (CBN) midweek primary auction.
The average yield dropped to 19.64%, driven by stronger demand for specific maturities, especially the NOV-06 bill, which saw a sharp 91bps decline in yield at the mid-segment of the yield curve. The newly issued 364-day bill, priced at 19.63% during the auction, also saw notable secondary market activity.
According to Cordros Capital, yields at the short end of the curve inched up by 1bp, fueled by selloffs in the 91-day to maturity (DTM) paper, which rose by 14bps. In contrast, the mid (-1bp) and long (-6bps) ends of the curve saw yield contractions, as demand for the 182-day (-91bps) and 350-day (-6bps) bills gained momentum.
The CBN’s auction saw the sale of ₦598.33 billion across the 91-, 182-, and 364-day tenors, with total subscriptions hitting ₦1.08 trillion, nearly double the ₦550 billion offered. The stop rates for the 91- and 182-day bills held steady at 18.00% and 18.50%, respectively, while the 364-day tenor edged up by 3bps to 19.63%.
In the secondary market, trading focused on the new 1-year bill maturing on May 7, 2026, with offers around 19.40%. Long-dated OMO bills also experienced mild selloffs.
Despite the increased interest, actual trading activity remained relatively limited. As highlighted by AIICO Capital, the benchmark NTB mid-rate closed at 19.64% for the session. Analysts expect the results of the auction to influence market sentiment heading into Friday’s trading session.
Additionally, the average yield in the OMO segment decreased by 2bps to 26.8%, reflecting subdued demand for certain maturities.
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