…The naira depreciated this week by 0.2% w/w to NGN1,441.89/USD
SAT NOV 08 2025-theGBJournal| FGN Bonds average yield declined by 12bps w/w to 15.8%. Across the curve, the average yield decreased at the short (-16bps) and mid (-17bps) segments following demand for the JAN-2026 (-40bps) and JUL-2034 (-44bps) bonds, respectively, while it closed flat at the long end.
We expect the robust liquidity position to sustain demand for bonds, exerting mild downward pressure on yields.
In line with expectations, N1.45 trillion in OMO maturities flowed into the system this week, boosting overall liquidity.
The Central Bank of Nigeria (CBN) intervened to sterilize excess funds, mopping up N273.60 billion through open market operations.
Nonetheless, given the modest scale of outflows, system liquidity remained robust at a net long position of N4.39 trillion (Previous: N3.37 trillion), with the OVN rate broadly unchanged at 24.9%.
Barring any liquidity tightening measures by the CBN in the coming week, system liquidity is expected to remain ample, keeping the OVN rate anchored around current levels.
Meanwhile, the naira depreciated this week by 0.2% w/w to N1,441.89/USD, amid the USD50.00 million intervention from the CBN.
In the forwards market, the naira rates depreciated across the 1-month (-0.6% to NGN1,467.66/USD), 3-month (-0.7% to NGN1,517.95/USD), 6-month (-0.8% to NGN1,588.99/USD) and 1-year (-1.0% to NGN1,724.16/USD) contracts.
Gross FX reserves increased for the seventeenth consecutive week, growing by USD153.75 million w/w to US$43.30 billion (November 5).
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