Nigerian Treasury Bills Demand Surpasses Supply, Driving Yield Decline

The Nigerian market witnessed robust demand for Treasury Bills during the recent auction held by the Central Bank of Nigeria (CBN) in February. Investor interest exceeded supply, causing a sharp drop in long-term yields.

The CBN offered a total of N1.15 trillion across various tenors, with total subscriptions reaching N4.59 trillion, representing a 33.41% increase from the previous auction. Demand was notably skewed towards longer tenors, reflecting investors' preference for locking in higher yields.

The average yield eased by 7 basis points to 17.55%, with strong interest observed across the yield curve. The CBN's measured approach to liquidity management led to a decline in total allotments by 10.17% compared to the previous auction.

The secondary market also experienced a bullish trend, with yields compressing across Treasury Bills and bonds.