…At the money market, the overnight (OVN) rate expanded by 4bps w/w to 27.0% amid inflows from OMO (N263.70 billion) and NTB (N83.55 billion) maturities
SAT JUNE 14 2025-theGBJournal| The FGN bond secondary market traded with bullish sentiments on Friday driven by demand from local investors while treasury bills yield rose across all instruments
The average yield declined by 1bp to 18.8%. Across the benchmark curve, the average yield increased at the short (+2bps) and long (+10bps) ends, driven by selloffs of the FEB-2028 (+4bps) and JUL-2045 (+79bps) bonds, respectively, while it decreased at the mid (-4bps) segment following demand for the JUL-2034 (-24bps) bond.
Meanwhile, The FGN Eurobond market kicked off on a bullish note as optimism built around the U.S-China trade talks and increasing oil prices.
The bulls continued to dominate the FGN Eurobonds Market following the U.S-China tariff resolution and a softer than expected U.S CPI print at 2.4% YoY in contrast to 2.5% forecast and 2.3% previous.
However, there was a reversal of this trend triggered by rising Middle East tensions which spurred risk off sentiments. Week-on-week, the average benchmark yield closed flat.
Over the medium term, analysts expect a moderation in bond yields, influenced by two factors – the anticipated dovish monetary policy stance and demand and supply dynamics.
The Treasury bills secondary market traded with bearish sentiments as the average yield across all instruments advanced by 32bps to 23.3%.
The average yield across the market segments, fell by 5bps to 20.6% in the NTB segment, while it advanced by 14bps to 26.0% in the OMO segment.
The Debt Management Office (DMO) is scheduled to conduct an NTB PMA next Wednesday (18 June) with N162.02 billion worth of bills on offer.
At the auction, analysts expect rates to slightly taper.
At the money market, the overnight (OVN) rate expanded by 4bps w/w to 27.0% amid inflows from OMO (N263.70 billion) and NTB (N83.55 billion) maturities.
Consequently, these inflows caused the average system liquidity to improve, settling at a net long position of N986.79 billion (compared to a net long position of N628.90 billion in the previous week).
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