…System liquidity remained in positive territory, opening the week with an estimated surplus of N2.11 trillion.
SAT SEPT 20 2025-theGBJournal| The Treasury bills secondary market traded on a bullish note this week, supported by ample system liquidity, demand spillover from unmet bids at the PMA, and the softer August 2025 CPI print, which strengthened expectations of a dovish tilt by the MPC at its upcoming September meeting.
The average yield consequently, fell by 158bps w/w to 20.2%. By segment, NTB and OMO yields declined by 30bps and 280bps to 18.5% and 22.0%, respectively.
At Wednesday’s NTB auction, the Debt Management Office (DMO) offered bills worth N290.00 billion – N30.00 billion for the 91D, N60.00 billion for the 182D, and N200.00 billion for the 364D bills.
Subscription level settled higher at N1.59 trillion (previous auction: N1.01 trillion), with a bid-to-offer ratio of 5.5x (previous auction: 2.1x).
The auction closed with the DMO allotting N345.10 billion – N30.32 billion for the 91D, N42.28 billion for the 182D, and N272.50 billion for the 364D papers – at respective stop rates of 15.00% (previously: 15.32%), 15.30% (previously: 15.50%) and 16.78% (previously: 17.69%).
Similarly, the FGN bond secondary market traded on a bullish note, with average bond yield declining by 8bps to 16.6%.
Across the benchmark curve, the average yield declined at the short (-17bps) and mid (-2bps) segments, driven by demand for the JAN-2026 (-82bps) and FEB-2031 (-12bps) bonds, respectively, while it closed flat at the long end.
Cordros Research analysts say they expect the outcome of the MPC meeting to be the key catalyst for yield movements in the bond secondary market, with policy guidance likely to set the tone for investor positioning.
Overall, fixed income market capitalization rose 0.002% to N51.16 trillion.
At the Money Market, system liquidity remained in positive territory, opening the week with an estimated surplus of N2.11 trillion.
This was further buoyed by inflows of N204.87 billion from OMO maturities. This ample liquidity kept the overnight rate stable at 27.0%.
As a result, the system’s net long position increased to an average of N2.36 trillion (vs. N1.94 trillion in the prior week).
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