Traders at United Bank for Africa (UBA) have indicated that investor participation in the Nigerian Treasury bills market is expected to remain active in the coming weeks, following rate adjustments observed in the most recent primary market auction. According to UBA’s trading desk, the auction, which recorded lower stop rates across all tenors, reflects a shift in the Central Bank of Nigeria’s current monetary stance.
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The decline in rates, particularly on the 91-day, 182-day, and 364-day instruments, appears to have attracted interest from both institutional and retail investors. According to market analysts, the preference for shorter-term instruments continues to be driven by liquidity needs and caution over duration risk, even as yield compression affects returns across maturities.
The 364-day bill, despite offering the highest return among the tenors, also saw a decline in yield as strong demand persisted. According to traders, the trend indicates a broader expectation of interest rate stability and a moderate inflation outlook over the short to medium term.
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UBA’s trading desk noted that in the absence of significant macroeconomic changes or policy tightening, the current low-yield environment may continue to define market dynamics. The secondary market for Treasury bills is also anticipated to experience higher turnover as investors reposition portfolios in response to evolving central bank signals.
Overall, the outlook remains one of cautious optimism, as traders continue to monitor fiscal developments and inflation trends that could influence monetary policy and investor behavior in the near term.
