Treasury Bills Yield Slides to 17.72% as Demand Strengthens
Yields on Nigerian Treasury bills eased by three basis points to an average of 17.72 per cent in the secondary market, as investors increased exposure to naira-denominated assets ahead of the 2026 auction cycle.
Market activity reflected adjustments following the Central Bank of Nigeria’s recent repricing of rates across short-, medium- and long-tenor bills at its December auctions. While investors had anticipated lower spot rates on expectations of easing inflation, the apex bank surprised the market by hiking discount rates, reinforcing its tight monetary stance.
Despite the unexpected move, fixed income analysts say demand for Treasury bills has remained resilient, with the current yield moderation expected to persist into the first quarter of 2026.
The outlook, they note, aligns with efforts to keep Nigerian Treasury bills attractive enough to support broader monetary policy objectives and sustain foreign and domestic portfolio inflows.
In the secondary market, trading closed on a mildly bullish note, as yields declined across most of the curve. The strongest movement was recorded on the 17-Dec paper, where yields dropped by 13 basis points, reflecting selective demand at the longer end of the curve.
Analysts observed generally subdued activity across maturities. In a market note, AIICO Capital Limited said most outstanding bills closed unchanged, pointing to limited trading interest and relatively balanced demand and supply conditions in the absence of strong market catalysts.
Notably, the 17-Dec-26 Treasury bill was the only instrument to record a marginal gain, with its yield declining by six basis points to close at 16.82 per cent, signalling mild investor appetite for longer-dated securities.
Other key maturities, including the 08-Jan-26, 19-Feb-26 and 03-Dec-26 bills, closed flat at 15.32 per cent, 16.98 per cent and 16.85 per cent, respectively.
Overall, the moderation in yields pushed the average Treasury bills yield down by three basis points to 17.72 per cent, reinforcing cautious optimism in the fixed income market amid expectations of a sustained tight monetary stance into early 2026.
