SAT APRIL 18 2026-theGBJournal| In the fixed income space, the Treasury Bills secondary market traded on a bullish note, with the average yield dipping by 2 basis points to 18.8% by close of trade on Friday.
This was driven by ample liquidity, which also pushed NTB and OMO yields lower by 2bps and 7bps to 17.4% and 20.8%, respectively.
During the week, the Central Bank of Nigeria (CBN) conducted an OMO PMA, offering N600 billion across 7-, 63-, and 140-day tenors. Strong investor demand saw total subscriptions hit N2.58 trillion, with eventual allotments of N2.17 trillion at stop rates of 21.90%, 19.88%, and 19.88%.
Next week, with system liquidity expected to remain strong, we anticipate sustained demand for bills, which should drive a further moderation in yields.
Additionally, the Debt Management Office (DMO) is scheduled to conduct an NTB PMA next Wednesday (April 22), with NGN750.00 billion in bills expected to be offered.
Similarly, the FGN bond market closed bullish, as average yields fell by 5 basis points to 15.9%.
Across the curve, yields declined sharply at the short end—driven by strong demand for the March 2027 bond—while the mid segment saw slight upward pressure due to sell-offs in the August 2030 bond. The long end remained broadly unchanged.
The overnight (OVN) rate declined by 19 basis points week-on-week to 22.2%, supported by strong system liquidity at the start of the week and inflows from OMO maturities worth N1.34 trillion, which partly offset outflows of N2.17 trillion from OMO PMA.
Despite the outflows, liquidity conditions remained robust, with the system posting an average net long position of N4.03 trillion, albeit lower than N6.62 trillion recorded in the previous week.
On the currency front, the naira appreciated by 0.7% week-on-week to N1,346.00/$, buoyed by increased FX supply from offshore investors participating in the OMO auction.
This positive momentum extended to the forwards market, where the naira strengthened across the 1-month, 3-month, 6-month, and 1-year contracts.
However, external reserves continued their downward trend, declining by $160 million to $48.65 billion as of April 16, 2026, marking the fifth consecutive week of depletion.
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