The Nigerian Treasury bill (NTB) market witnessed a sharp decline in average yields, falling by 46 basis points to settle at 19.4% in the secondary market, as investors showed strong interest in fixed income securities.
Demand surged across the curve. At the short end, yields dropped by 1 basis point due to interest in 79-day bills. The mid-segment saw a 21-basis-point decline as 170-day papers were heavily accumulated. The long end experienced the steepest drop—182 basis points—driven by investor appetite for 184-day bills.
In tandem, yields on Open Market Operations (OMO) bills contracted significantly by 62 basis points, bringing the average yield to 25.1% in the secondary market.
The DMO has also announced a fresh NTB auction on behalf of the Central Bank of Nigeria, offering ₦250 billion across 91-day, 182-day, and 364-day tenors. While investors await auction outcomes, sentiment in the secondary market has turned optimistic.
Both the NTB and OMO markets opened the week on a strong note, with the average yield declining by 50 basis points to close at 22.82%. The bullish trend was largely due to sustained buying interest, particularly in OMO instruments, where yields dropped by 71 basis points to 25.70%. The NTB market also saw positive momentum, with average yields easing by 30 basis points to 19.93%.
According to Coronation Research, “we expect the improved system liquidity this week to drive market interest, thereby leading to a further decline in yields.”
