The Nigerian Treasury bills market saw a slight uptick in yields after the Central Bank of Nigeria (CBN) raised stop rates at Wednesday’s primary auction. Following the auction, trading activity intensified as unmet bids spilled into the secondary market. However, liquidity constraints kept overall volumes in check, according to TrustBanc Financial Group.
Analysts noted strong demand for the newly issued 364-day bill, with trades executed around 19.50%-19.60%, countering profit-taking from auction winners. The Jun-25, Sep-25, and Feb-26 maturities also saw heightened interest, closing with an average benchmark yield of 18.98%.
Short, mid, and long-term yields contracted by 1 basis point each due to demand for 77-day, 175-day, and 336-day maturities. Conversely, OMO bill yields rose by 8 basis points to 22.5% in the secondary market.
At the auction, the Debt Management Office (DMO) offered ₦800 billion, attracting ₦902.04 billion in subscriptions and allotting ₦503.92 billion. Stop rates settled at 18.00%, 18.50%, and 19.94% for the 91-day, 182-day, and 364-day tenors, rising from previous rates of 17.00%, 17.79%, and 18.39%.
Despite this, AIICO Capital Limited noted that secondary market trading began below auction levels. Analysts anticipate a mixed-to-bullish sentiment in the near term as investors selectively seek attractive opportunities.
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