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Treasury bills, FGN Bonds yield slide as banking system liquidity settles lower at N8.62 trillion net positive

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THUR OCT 29 2026-theGBJournal|The Banking system contracted Wednesday after a record high in the previous session, settling at ₦8.62 trillion net positive. Despite this, Overnight (O/N) rate decreased by 3bps to close at 20.35%. Open Repo rate and Nigerian Overnight Financing Rate (NOFR) remained unchanged at 20.00%.

Activities in the Treasury bill secondary market were calm albeit with a bullish undertone, as the average yield contracted by 1bp to 17.9%.

Across the curve, the average yield contracted at the short (-1bp), mid (-1bp) and long (-1bp) segments, driven by demand for the 92DTM (-1bp), 169DTM (-1bp) and 351DTM (-1bp) bills.

At NTB primary market auction, the Debt Management Office (DMO) offered N800.00 billion across tenors, with total demand reaching N1.91 trillion, translating to a bid-to-offer ratio of 2.4x.

The DMO ultimately allotted N71.16 billion, implying a bid-to-cover ratio of 26.8x. Stop rates contracted by 10 bps, 1 bp and 10 bps to 15.40%, 15.79% and 15.80% for the 91-, 182- and 364-day tenors , respectively.

Similarly, the average yield contracted by 2bps to 18.7% in the OMO segment.

Elsewhere, the FGN bond secondary market traded on a bullish note as the average yield contracted by 1bp to 16.2%.

Across the curve, the average yield contracted at the short (-2bps) and long (-1bp) ends, due to demand for the Feb-2031 (-5bps) and Jun-2053 (-5bps) bonds, respectively. The average yield closed flat at the mid segment.

X-@theGBJournal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com

 

 

 

 

Real Business Needs Real Banking
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