SAT SEPT 26 2026-theGBJournal| The OVN rate contracted by 147bps w/w to 20.8%, as higher average SDF flows N5.75 trillion vs N2.82 trillion previously), following the Monetary Policy Committee’s (MPC) 350bps rate cut, alongside inflows from OMO (N2.27 trillion) maturities offset OMO (N2.25 trillion) and net NTB (N19.78 billion) PMA debits.
Consequently, average system liquidity rose to a net long position of N5.85 trillion from N3.27 trillion in the previous week.
The Treasury bills secondary market traded on a bullish note, supported by sizable unmet demand from the week’s NTB and OMO primary market auctions, which extended into the secondary market.
The MPC’s 350bps rate cut also supported further downward repricing of yields.
Consequently, the average yield across all instruments contracted by 91bps to 18.2%. By segment, average NTB secondary market yields declined by 96bps to 17.9%, while average OMO secondary market yields fell by 45bps to 19.8%.
At Wednesday’s NTB PMA, the DMO offered N600.00 billion across tenors, with total demand reaching N4.23 trillion.
The Debt Management Office (DMO) ultimately allotted N497.58 billion, equivalent to 0.83x the amount offered, with stop rates contracting by 80bps, 70bps and 73bps to 15.50%, 15.80% and 15.89% for the 91-, 182- and 364-day tenors, respectively.
Similarly, at Thursday’s OMO PMA, the CBN offered N1.00 trillion in bills, attracting N6.09 trillion in demand, and ultimately allotting N2.25 trillion. Stop rates settled at 17.29% and 16.99% for the 152- and 180-day tenors, respectively.
The FGN bond secondary market traded with a bullish tone, with average yields across instruments contracting by 85bps to 15.7%, supported by robust local and offshore demand and further downward repricing following the MPC’s 350bps rate cut.
Across the benchmark curve, the average yield contracted at the short (-156bps), mid (-83bps) and long (-44bps) segments due to demand for the MAR-2027 (-269bps), JUN-2032 (-111bps) and JUN-2038 (-75bps) bonds, respectively.
The naira appreciated by 0.1% w/w to N1,330.68/USD, as inflows for the week’s OMO auction and a CBN intervention of a USD200.00 million sale offset domestic demand.
In the forwards market, the naira appreciated across the 1-month (+0.2% to N1,349.27/USD), 3-month (+0.2% to N1,386.17/USD), 6-month (+0.2% to N1,438.33/USD), and 1-year (+0.2% to N1,541.80/USD) contracts.
Meanwhile, gross external reserves increased by USD136.76 million to USD54.86 billion (24 September 2026).
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