Treasury Bills yield dips to 25.2% ahead of midweek auction

The average yield on Nigerian Treasury bills dipped to 25.2% as investors’ interest in naira assets increased amidst buckets of uncertainties in the local economy. The inflation rate is trending higher, and the exchange rate conditions have continued to drive appetite sideways in the fixed income market segment with a widening real return on investment.
There was a mixed trading pattern in the fixed income market generally, with a significant selldown in local bonds and rising appetite for Treasury papers after data showed the inflation rate widened.
The Treasury bills market saw sustained bullish activity throughout the week, particularly at the long end of the curve, with high demand for bills maturing between November 2025 and January 2026. Notable interest was observed in the December 2025 and January 2026 bills. Activity on the short end of the curve was limited due to a wide bid-ask spread. Yields moderated across the curve, with the long end seeing the most notable declines, according to TrustBanc Financial Group Limited.
Notably, the 25-Dec and 8-Jan bills were quoted at 21.80/21.40 and 21.70/21.30, respectively, analysts said in the note. Towards the end of the week, trading activity slowed, with participants selectively engaging across the spectrum. 
Across the market segments, the average yield pared by 1 bp to 25.2% at the T-bills segment, Cordros Capital Limited told investors in its note. However, the yield line expanded by 51 bps to 28.3% at the OMO bills segment in the secondary market due to sell pressures. Analysts said they expect yields in the Treasury bills secondary market to trend lower as the Debt Management Office is scheduled to conduct a primary market auction. On Wednesday, the DMO will offer N237.08 billion worth of Treasury bills to investors.