TUE NOV 18 2025-theGBJournal| The FGN Bond and treasury bills yield slid on Monday as system liquidity stayed fairly robust, supported by the upcoming N8.50 billion coupon payments from FGN bonds.
The Treasury bills secondary market were bullish as the average yield contracted by 2bps to 16.4%.
Across the curve, the average yield contracted at the short (-2bps), mid (-2bps) and long (-3bps) segments, driven by the demand for the 80DTM (-2bps), 171DTM (-2bps) and 353DTM (-3bps) bills, respectively. Conversely, the average yield expanded by 4bps to 21.8% in the OMO segment.
T-Bills contracted by 35bps w/w to 19.32% p.a. by close of trade last Friday, driven by stronger demand in the NTB, where yields fell by 41bps w/w to 16.98% p.a. Similarly, the demand in OMO segment was strong, with average yields moderating by 29bps w/w to 21.74% p.a.
Similarly, the FGN bond secondary market traded on a bullish note, as the average yield contracted by 15bps to 15.4%.
Across the benchmark curve, the average yield expanded at the short (+2bps) and mid (+2bps) segments, driven by profit-taking activities on the JAN-2026 (+33bps) and JUL-2034 (+17bps) bonds, respectively but contracted at the long (-38bps) end, following the demand for the APR-2049 (-44bps) bond.
Overall, market sentiment reflected steady demand for fixed income assets amid robust system liquidity amid minimal auctions during the week.
The Eurobond market also traded bullish, with average yields declining by 21bps w/w to 7.77% p.a., driven by strong demand forthe shorter dated sovereign notes maturing Friday, 21st November 2025.
Meanwhile, the overnight lending rate remained unchanged at 24.9% coming off strong through last week.
Last week, he market closed at N3.62 trillion, slightly below the opening balance of N3.91 trillion, while peaking at N5.90 trillion on Thursday.
Liquidity conditions were supported by a sizeable N3.63 trillion in OMO maturities, partly offset by N2.55 trillion in new OMO allotments.
Consequently, interbank rates remained broadly stable, with liquidity levels still elevated. The Open Repo Rate (OPR) closed flat at 24.50%, while the Overnight Rate (OVN) inched up by 12.67bps to 24.92%.
At the OMO auction, the Central Bank of Nigeria (CBN) offered N600.00bn across 152 and 173 day maturities.
Total demand remained strong, with total subscriptions reaching N3.09 trillion, mainly skewed towards the longer dated bill (which attracted N2.45trn).
The CBN allotted N2.55 trillion, with stop rates clearing lower at 20.59% (152 day) and 20.69% (173 day), signalling continued willingness to maintain yields on a downward path despite large system liquidity.
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