…Debt Management Office (DMO) will re-open the AUG-2030 and JUN-2032 bonds, offering NGN130.00 billion apiece
SAT OCT 25 2025-theGBJournal| Fixed income market capitalization holds steady at N51/39 trillion spurred by system liquidity inflows.
The Treasury Bills secondary market closed mixed on Friday as the average yield across all instruments decreased by 2bps w/w to 19.4%.
By segment, NTB yields increased by 5bps to 17.4%, while OMO yields pared by 2bps to 21.6%.
At Wednesday’s NTB auction, the Central Bank of Nigeria (CBN) offered bills worth N650.00 billion – N100.00 billion for the 91D, N100.00 billion for the 182D, and N450.00 billion for the 364D bills.
Total subscription moderated to N750.91 billion (previous auction: N1.06 trillion), indicating a bid-to-offer ratio of 1.2x (previous auction: 1.9x).
The auction closed with the CBN allotting N391.59 billion – N7.61 billion for the 91D, N67.42 billion for the 182D, and N316.56 billion for the 364D papers – at respective stop rates of 15.30% (previous: 15.00%), 15.50% (previous: 15.25%) and 16.14% (previous: 15.77%).
This indicates an under-allotment rate of 0.6x (previous: 1.0x). Additionally, the CBN conducted an OMO auction, offering NGN 600.00 billion worth of bills.
Total subscriptions reached N1.11 trillion, representing a bid-to-offer ratio of 1.8x. Eventually, the CBN sold only N827.00 billion, with stop rates of 19.50% and 19.84% on the 196D and 252D maturities, respectively.
Looking ahead, system liquidity inflows in the coming week are expected to stimulate demand for bills, likely resulting in a further moderation in yields.
At the FGN bond secondary market, trade was bullish as investors reinvested coupon inflows.
Accordingly, the average yield declined by 10bps w/w to 15.9%. Across the curve, the average yield declined at the short (-9bps) and mid (-23bps) segments following demand for the APR-2029 (-53bps) and JUN-2033 (-67bps) bonds, respectively, while it closed flat at the long end.
Looking ahead, analysts expect trading direction in the secondary market to be shaped by the outcome of the FGN bond auction on Monday (27 October), where the Debt Management Office (DMO) will re-open the AUG-2030 and JUN-2032 bonds, offering N130.00 billion apiece.
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