SAT SEPT 19 2026-theGBJournal|The OVN rate expanded by 9bps w/w to 22.2%, as OMO (N2.52 trillion) and FGN Bond (N748.64 billion) PMA debits offset inflows from OMO maturities (N3.05 trillion).
Meanwhile, average system liquidity rose to a net long position of N3.27 trillion, from N3.16 trillion in the previous week, as mid-week OMO maturities boosted liquidity before the Central Bank of Nigeria’s (CBN) OMO auction subsequently drained some of the excess.
The Treasury bills secondary market traded on a bullish note, as unmet bids from the week’s OMO auction spilled into the secondary market, with sentiment further supported by strong local demand.
As a result, the average yield across all instruments contracted by 5bps to 19.1%. By segment, average NTB secondary market yields closed flat as investors maintained a cautious stance ahead of next week’s NTB PMA.
Similarly, average OMO secondary market yields contracted 16bps to 20.2%, as unmet bids at the week’s OMO PMA filtered into the secondary market.
At the OMO PMA on Wednesday, the CBN offered N1.00 trillion in bills, attracting N3.03 trillion in demand, and ultimately allotting N2.52 trillion. Stop rates settled at 19.25%, 19.05% and 18.39% for the 69-, 90- and 153-day tenors, respectively.
The FGN bond secondary market traded on a bullish note, with average yields across instruments contracting by 11bps to 16.6%, as unmet demand from the week’s bond PMA spilled into the secondary market.
Sentiment was further supported by JP Morgan’s inclusion of Nigeria as a constituent of its flagship GBI-EM Edge (Frontier Market) local-currency bond index, which provided an additional source of demand for domestic bonds.
Across the benchmark curve, the average yield expanded at the short (+12bps) and mid (+3bps) segments due to sell pressure on the MAR-2027 (+30bps) and JUN-2033 (+23bps) bonds, respectively while it contracted at the long (-63bps) end due to demand for the APR-2049 (-193bps) bonds.
At Monday’s bond PMA, the DMO reopened the JUN-2038 bond and newly issued the SEP-2036 bond, offering a total of NGN1.00 trillion.
Total demand settled at N1.49 trillion, with the DMO eventually allotting N748.64 billion.
The stop rates on the JUN 2038 bonds, which was on-the-run at the previous auction, contracted by 94bps to 16.85%, while the newly issued SEP-2036 settled at 16.79%.
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