SAT NOV 15 2025-theGBJournal| The Treasury bills secondary market as well as the FGN bond secondary market traded with bullish sentiments on Friday amid the liquidity surplus and sustained demand from portfolio managers and PFAs respectively.
The strong system liquidity expected to buoy sustained demand for treasury bills, keeping yields depressed.
Additionally, the Debt Management Office (DMO) is scheduled to conduct an NTB PMA next Wednesday (November 19) with N700 billion worth of bills on offer.
Similarly, analysts expect the robust liquidity position to sustain demand for bonds, exerting mild downward pressure on yields.
Meanwhile, treasury bills average yield across all instruments contracted by 35bps w/w to 19.3%.
By segment, NTB yields fell by 41bps to 17.0%, while OMO yields declined by 51bps to 21.7%.
The FGN bond average yield equally dell by 20bps w/w to 15.6%.
Across the curve, the average yield contracted at the short (-31bps) and mid (-23bps) segments following the demand for the FEB-2031 (-42bps) and APR-2032 (-54bps) bonds, respectively, but closed flat at the long end.
At the money market, the overnight (OVN) rate trended higher this week, rising by 13bps w/w to 24.9%, despite a notable improvement in system liquidity.
The market received N3.63 trillion in OMO maturities, leaving the system at a net long position of N5.09 trillion (Previous: N4.39 trillion).
In the absence of any mop-up activity, we expect inflows from FGN bond coupon payments (N151.63 billion) to further support system liquidity, causing the OVN rate to stay around the current level.
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