Amanze Chinonye
Nigeria’s Treasury Bills (T-bills) market maintained a bullish streak through the last trading week, buoyed by strong demand particularly at the long end of the curve despite cautious trading ahead of the next Monetary Policy Committee (MPC) meeting.
The week opened with the September 3 bill quoted at 17.10/16.70, reflecting a sharp drop from earlier levels. Demand intensified ahead of the Nigerian Treasury Bills (NTB) auction, where the Debt Management Office (DMO) offered ₦290 billion but received robust subscriptions of ₦1.59 trillion, eventually allotting only ₦345.10 billion.
The heavy oversubscription drove stop rates significantly lower across maturities: the 91-day, 182-day, and 364-day bills closed down by 32bps, 20bps, and 91bps, respectively, with the 364-day paper settling at 16.78%.
Join our WhatsApp ChannelFollowing the auction, unmet demand spilled into the secondary market, lifting prices further as the newly issued September 17 bill was actively sought at 15.90%, while the September 3 bill eased to 16.20/16.15. Trading ended the week on a calm but firm note, with deals on the September 3 paper struck around 16.00%.
Overall, the average benchmark yield fell 34bps week-on-week to 18.43%, underscoring the strength of buying interest.
The rally reflects investors’ hunt for attractive returns in a high-liquidity environment and signals confidence that yields may continue to trend lower if the MPC maintains a dovish stance.
While the market is expected to open on a calm note, participants are likely to trade cautiously as they await the MPC’s policy decision, which could set the tone for short-term interest rates in the coming weeks.
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