Average yields on Nigerian Treasury bills declined to 17.88 per cent on Monday as investors stepped up purchases of the government securities, extending a rally in the secondary market.
Market data showed that yields on short-term T-bills dropped by two basis points, while medium-term instruments recorded a three-basis-point decline, reflecting stronger demand for naira-denominated assets.
The decline followed last week’s primary market auction, where the Debt Management Office offered N800bn in T-bills but received subscriptions worth N1.91tn, indicating that investors were willing to commit more than twice the amount available.
Despite the strong demand, the DMO allotted only N71.16bn, representing about nine per cent of the offer. The limited sales reduced the volume of fresh securities entering the market, helping to sustain buying interest in outstanding bills.
Stop rates also declined by one basis point across the three maturities. The 91-day bill settled at 15.40 per cent, the 182-day instrument at 15.79 per cent and the 364-day bill at 15.80 per cent.
The auction outcome suggests that investors were prepared to accept slightly lower returns to secure government securities, while the DMO’s limited acceptance of bids restricted the supply available to the market.
An investment firm attributed the continued appetite for T-bills to surplus liquidity in the financial system and the attractive risk-adjusted returns offered by government instruments.
Buying interest was also recorded in the Open Market Operations bill segment, where retail and corporate investors remained active.
Data from Herwood Securities Limited showed that the T-bill maturing on 8 July, 2027, was quoted at an offer yield of 16.80 per cent, while the 15 July , 2027, instrument was offered at 16.70 per cent.
The 26 August, 2027, bill was quoted at 16.55 per cent bid and 16.40 per cent offer, while the 2 September instrument was offered at 16.10 per cent. The 7 October bill carried an offer yield of 15.55 per cent.
In the OMO segment, the 26 January instrument was offered at 17.25 per cent, while the 2 February bill was quoted at 17.50 per cent. The 20 April instrument traded at 17.05 per cent bid and 17.00 per cent offer, while the 22 June bill was offered at 16.20 per cent.
