Market data compiled by Meristem Securities Limited show that only N1.50 trillion of the total amount represented fresh borrowing, while the balance was deployed to refinance maturing Treasury bills within the same year. This outcome underscores a more restrained borrowing stance by the monetary authorities compared with recent years.
The 2025 net inflow is the lowest recorded in three years. In contrast, the CBN posted a net inflow of N5.85 trillion in 2024, after refinancing matured bills from a total allotment of N13.4 trillion, highlighting a sharper reliance on Treasury bills to fund short-term obligations in the previous year.
Meanwhile, yields in the Treasury bills market trended slightly lower, reflecting strong investor demand ahead of anticipated government borrowing in 2026. The average yield across Nigerian Treasury bills eased to 17.72 per cent, driven by increased positioning by investors across select tenors.
Analysts attributed the modest yield contraction to heightened interest in short- and mid-tenor instruments in the secondary market, following earlier demand for longer-dated bills at primary auctions. This shift contributed to mild compression along parts of the yield curve.
Trading activity during the review period remained mixed but broadly balanced. At the beginning of the week, yields across most maturities closed largely unchanged as cautious investor sentiment limited repricing across short- and mid-tenor bills. This subdued tone persisted into Tuesday, with rates at the short end remaining flat amid light positioning.
However, longer-dated Treasury bills attracted renewed demand. Notably, the 03-Dec-26 paper recorded a 69 basis point decline in yield to 16.20 per cent, while the 17-Dec-26 and 10-Dec-26 bills also experienced yield compression.
By the close of the week, market activity remained muted, with yields across most maturities holding steady and only marginal adjustments observed at the long end. Overall, the market settled with a mild downward bias, as the average benchmark yield declined by four basis points.
Looking ahead, analysts expect Treasury bills trading to remain closely aligned with prevailing system liquidity conditions, as investors continue to balance yield considerations with expectations around future government borrowing and monetary policy direction.