Nigerian Treasury bills rallied in the secondary market on Monday as month-end buying momentum and portfolio switching boosted demand ahead of the fourth-quarter primary market auction. Investor sentiment was further supported by expectations that the recent interest rate cut would influence spot rate pricing.
With inflation on a downward trend, average returns on T-bills have been adjusting to reflect market conditions, while abundant liquidity has sustained the rally. Backed by more than ₦5 trillion in system liquidity, banks have largely held their positions in the absence of funding pressures.
Trading opened on a mixed note, but yields on select maturities slipped by 3 basis points (bps), while profit-taking pushed the 03 Sept 2026 paper up by 18 bps, according to fixed-income market analysts. At market close, the average yield contracted by 1 bp to 18.0%, data from Cordros Capital showed.
Across the curve, yields contracted at the short (-5 bps) and mid (-3 bps) ends, driven by demand for the 87-day (-25 bps) and 178-day (-3 bps) bills. In contrast, yields rose at the long end (+3 bps), led by selling pressure on the 325-day (+41 bps) paper.
In the OMO segment, average yields fell 4 bps to 21.6%. Analysts expect trading to remain aligned with strong system liquidity and the outcome of the upcoming bond auction.
