FRI AUG 14 2026-theGBJournal| Overnight lending rate edged up 1 basis point to 22.1% on Thursday after the government’s ₦1.46 trillion Treasury-bill auction allotments were debited from investors, tightening liquidity in the banking system.
The move highlights the immediate liquidity impact of the Treasury bill auction, as funds were transferred from banks and investors to the government.
Despite the cash drain, trading in the Treasury-bill secondary market remained subdued, with the average yield unchanged at 18.1%.
Trading across the Treasury-bill curve was mixed.
Average yields fell 1bp at the short end and 3bps in the belly, supported by demand for the 84-day-to-maturity bill, whose yield declined 1bp, and the 154-day bill, which rallied 21bps.
At the long end, yields rose 2bps, led by a 24bp selloff in the 217-day bill.
The OMO market was firmer, with the average yield falling 4bps to 21.3%, pointing to stronger demand for outstanding CBN liquidity-management instruments.
The tone was weaker in the FGN bond market, however, where the average yield rose 3bps to 16.8%. Selling pressure was concentrated at the short and long ends of the curve, with yields on the February 2031 and June 2038 bonds climbing 23bps and 14bps, respectively.
Mid-curve yields were unchanged.
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