SAT NOV 29 2025-theGBJournal| The FGN bond secondary market traded muted for most of the week as investors mainly focused on Monday’s PMA but turned bearish on the last trading day.
The average yield, consequently rose by 14bps to 15.6%. Across the curve, the average yield increased at the short (+14bps), mid (+16bps), and long (+3bps) segments following selloffs of the JUL-2030 (+37bps), APR-2032 (+58bps), and JAN-2042 (+18bps) bonds, respectively.
At the FGN bond auction held on Monday, the DMO reopened the AUG-2030 and JUN-2032 instruments, offering a total of N460.00 billion. Aggregate investor demand reached N657.26 billion (Bid-to-offer: 1.4x), with the DMO ultimately allotting N583.52 billion (Bid-to-cover: 1.1x).
Stop rates cleared higher at 15.90% (Previous: 15.83%) for the AUG-2030 and 16.00% (Previous: 15.85%) for the JUN-2032 papers.
Sentiments were net bearish in the Treasury bills market, with buyers focused on the NTB curve while offers dominated the OMO curve.
Consequently, the average yield increased by 12bps to 19.2%. By segment, average NTB yields pared by 11bps to 16.8% while average OMO yields increased by 46bps to 21.9%.
The OVN rate declined by 213bps to 22.7%, driven primarily by net positive system liquidity from OMO maturities (N1.11 trillion) exceeding debits from the FGN bond PMA (N583.52 billion).
Banks’ activity at the SDF window moderated, following the 200bps SDF rate cut to 22.50%, with average placements dropping to N1.67 trillion (Prior week: N2.51 trillion), reflecting softer sterilized liquidity in the system.
Consequently, the system’s average liquidity position tapered to NGN1.93 trillion (Prior week: NGN2.19 trillion), pointing to modest easing in short term funding pressures.
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