The average yield on Nigerian Treasury bill fell to 25.6% in the secondary market on Tuesday, as investors shifted their attention to the midweek primary market auction.
Select long-dated Open Market Operation (OMO) papers including the Treasury bill dated December 4, 2025, attracted moderate market interest. Traders, however, took a cautious approach while they awaited the results of the Central Bank of Nigeria’s (CBN) planned auction.
Amid increased demand, yields across the curve eased, with the 10-April 2025 paper recording the most significant drop, falling by 75 basis points. Overall, the average secondary market yield moderated by 0.06% to settle at 25.64%, according to data from TrustBanc Financial Group.
Analysts predict a cautious trading session on Wednesday as market participants prepare for the Debt Management Office’s (DMO) auction, which will offer N275.71 billion worth of Treasury bills across 91-day, 182-day, and 364-day maturities.
While the auction is expected to draw strong interest due to high demand for naira-denominated assets, analysts warn that weak liquidity conditions in the money market could limit subscription levels.
As of Tuesday, local deposit money banks had already accessed N1.54 trillion in short-term funding to address liquidity constraints.
Although the expected oversubscription indicates continued faith in naira assets, liquidity issues could influence how the next auction plays out. The outcomes will be eagerly watched by market watchers in order to assess the wider ramifications for yields and market performance.
