SAT SEPT 05 2026-theGBJournal| Nigeria’s money and fixed-income markets ended the week on a bullish note, supported by stronger system liquidity and renewed demand for government securities, as the overnight rate fell 8bps week-on-week to 22.1% and FGN bond yields declined 12bps to 16.7%.
The improvement in liquidity was driven by stronger end-of-week system liquidity amid robust Standing Deposit Facility (SDF) placements, which rose to N4.46 trillion from N3.42 trillion previously.
This came despite OMO (N2.88 trillion) and net NTB (N130.91 billion) PMA debits, which partially offset inflows from OMO (N2.25 trillion) maturities. Nonetheless, average system liquidity increased to a net long position of N4.52 trillion, up from N4.26 trillion previously.
The stronger liquidity position also helped drive activity in the Treasury bills market, where the average yield across all instruments contracted by 1bp to 19.3%.
By segment, average NTB secondary market yields contracted by 5bps to 18.9%, as sizeable unmet bids at Wednesday’s NTB primary market auction (PMA) filtered into the secondary market.
In contrast, average OMO secondary market yields expanded by 22bps to 20.6%, as investors unwound positions to participate in Tuesday’s OMO PMA.
At Wednesday’s NTB PMA, the Debt Management Office (DMO) offered N700.00 billion across tenors, with total demand reaching N3.35 trillion, ultimately allotting N865.71 billion.
Stop rates contracted by 31bps to 16.84% for the 364-day tenor, while the 91- and 182-day tenors remained unchanged at 16.30% and 16.50%, respectively.
At the OMO PMA on Tuesday, the CBN offered N600.00 billion in bills, attracting N5.50 trillion in demand, and ultimately allotted N2.88 trillion. Stop rates settled at 19.59%, 18.99% and 18.99% for the 91-, 147- and 154-day tenors, respectively.
The FGN bond secondary market also traded on a bullish note, as the average yield across instruments contracted by 12bps to 16.7%, driven by demand from both local and offshore investors.
Across the benchmark curve, the average yield contracted at the short (-1bp), mid (-10bps) and long (-26bps) segments, due to demand for the MAR-2027 (-16bps), JAN-2035 (-32bps) and JUN-2038 (-59bps) bonds, respectively.
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