FRI APRIL 03 2026-theGBJournal| Treasury bills yields declined sharply, with the average yield falling 11 basis points to 18.8%, reflecting improved liquidity conditions in the fixed income market.
The drop was largely driven by sustained demand in the absence of a primary market auction, which redirected investor interest to the secondary market.
Across segments, Nigerian Treasury Bills (NTBs) recorded a more pronounced compression, with yields declining 15 basis points to 17.6%.
The lack of fresh supply at auction spurred heightened buying activity, exerting downward pressure on yields as market participants competed for available instruments.
Similarly, OMO yields contracted by 3bps to 20.2%.
Meanwhile, the Central Bank of Nigeria conducted two OMO auctions to manage system liquidity.
At the first auction, N600.00 billion was offered across the 8DTM, 99DTM, and 120DTM maturities, with total subscriptions of N1.95 trillion, split across the 8-day (N672.94 billion), 99-day (N91.15 billion), and 120-day (N1.18 trillion) instruments.
Total allotments came in at N1.74 trillion, comprising N662.94 billion (8-day), N85.15 billion (99-day), and N992.50 billion (120-day), at respective stop rates of 21.90%, 19.89%, and 19.94%.
At the second auction, N600.00 billion was offered, with total subscriptions of N1.30 trillion, split across the 70-day (N65.00 billion) and 140-day (N1.23 trillion) instruments.
Total allotments came in at N853.75 billion, comprising N50.00 billion (70-day) and N848.75 billion (140-day), at respective stop rates of 19.90% and 19.92%.
In contrast, the FGN bond secondary market closed on a mixed note, with average yields inching up by 2 basis points to 15.8%.
This modest uptick was driven by sell-offs in the belly of the yield curve, as investors unwound positions to meet settlement obligations for recently reopened bonds at auction.
Across the curve, the average yield declined at the short (-1bp) and long (-6bps) ends, driven by demand for the MAR-2028 (-4bps) and JAN-2042 (-27bps) bonds, respectively, while it increased at the mid segment (+6bps) following selloffs of the MAY-2033 (+34bps) bond.
Meanwhile the Debt Management Office conducted a bond auction, reopening the AUG-2030, JUN-2032 and MAY-2033 instruments, with a total offer of N750.00 billion.
Demand came in at N931.50 billion (Bid-to-offer: 1.2x), with allotments of N485.50 billion (bid-to-cover: 1.9x) at stop rates of 16.00%, 16.15% and 16.64%, respectively.
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