Foreign Investors Exit Nigerian T-Bills as Yields Hover Around 20%
The Nigerian Treasury Bills (NTBs) market witnessed renewed pressure at the start of the week, as foreign portfolio investors (FPIs) initiated significant selloffs in response to growing global trade concerns and a fresh 14% U.S. tariff on Nigeria’s exports.
Amid risk-averse sentiment, yields in the secondary market inched higher, with average yields rising four basis points to 19.9%, according to analysts at Cordros Capital. This trend signals bearish trading, despite a dip in yields in specific segments.
Investor unease, driven by a broader flight to safety, prompted offshore investors to reduce exposure to Nigerian debt. Meanwhile, local participants seized opportunities to buy at attractive rates, particularly in short-dated instruments.
Trading volumes remained concentrated on the February and March 2026 maturities, with some bargain-hunting seen on the January 22 and December 25 papers, which saw yield drops of 327 and 179 basis points respectively.
Segment-wise, short- and mid-tenor yields fell by 3 basis points each, fueled by demand for 80-day and 171-day papers. Conversely, yields at the long end rose by 11 basis points, driven by profit-taking on the 318-day bill.
Similarly, the Open Market Operations (OMO) segment recorded a 5-basis-point decline, closing at an average yield of 24.3%.
Analysts expect the bearish momentum to persist in the near term as investors await the upcoming NTB auction and the release of the Q2 2025 borrowing calendar for direction.
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Foreign Investors Exit Nigerian T-Bills as Yields Hover Around 20%