Yield on Nigerian Treasury Bills Reduces to 22.87%

The average yield reduced as trading activities on Nigerian Treasury bills ended on a bullish note in the secondary market on the back of investors increasing bets on naira assets.

The buying momentum came even as fixed interest securities investors shifted their attentions to activities in the primary market auction (PMA) conducted by the Debt Management Office (DMO) on behalf of the Central Bank.

The average yield on Treasury instruments contracted by 6 basis points in the secondary market to settle at 22.87%, traders said in a separate report. The Treasury bills market saw increased buying interest for specific maturities, especially for the April 2025 and September 2025 papers.

Analysts at Cordros Capital Limited expatiate that the average yield declined at the short (-1bp) and long (-25bps) ends.  The yield contraction witnessed across the curve was driven by buying interest in the 92-day to maturity which shed 2bps.

The buying interest in 351-day to maturity bills caused its yield line to slumped by 69 basis points, traders said.

Meanwhile, the average yield advanced at the belly of the curve by +24bps following profit-taking activities on the 134-day to maturity.  Elsewhere, the average yield contracted by 2bps to 24.5% in the OMO bills segment in the secondary market.

Key money market rates, such as the Open Repo Rate (OPR) and the Overnight Lending Rate (O/N), declined by 0.49% and 0.56% to finish at 31.90% and 32.25%, respectively.

Nigerian Interbank Treasury Bills True Yield experienced downward movement across all maturities, while the average secondary market yield on T-bills slightly eased by 0.06%, settling at 22.87%. #Yield on Nigerian Treasury Bills Reduces to 22.87%