By theG&BJournal
SAT MAR 07 2026-theGBJournal| Sentiments were mixed in the Treasury Bills secondary market with NTB yields advancing by 23bps to 17.5%, while OMO yields declined 7bps to 21.1%.
In the NTB market, yields trended higher as investors sold off bills ahead of the auction, anticipating higher stop rates amid a more risk averse global backdrop.
OMO yields however tapered, supported by the strong liquidity. All told, the average yield across all instruments increased by 4bps to 19.3%.
At Wednesday’s NTB primary market auction, the Debt Management Office (DMO) offered N1.05 trillion across tenors, with total demand reaching N2.34 trillion, translating to a bid-to-offer ratio of 2.2x.
The DMO ultimately allotted N1.01 trillion, implying a bid-to-cover ratio of 2.3x. Stop rates increased on the 91-Day tenor by 15bps to 15.95% and on the 364-Day tenor by 83bps to 16.73%, while the 182-Day tenor remained unchanged at 16.65%.
The CBN conducted an OMO auction, offering N600.00 billion across the 8, 99, and 106‑Day maturities. However, only N256.00 billion was allotted, with a stop rate of 19.40% on the 106-Day.
The Central Bank of Nigeria (CBN) conducted another OMO auction, offering N600.00 billion across the 7, 98, and 105-Day maturities. Consequently, only N235.60 billion was allotted on the 105-Day bill, with the stop rate maintained at 19.40%.
Meanwhile, sentiments in the FGN bond market weakened as investors offloaded bonds amid rising geopolitical risks linked to the US Iran conflict.
Consequently, average yields increased by 21bps to 15.8%. Across the curve, the average yield increased at the short (+15bps), mid (+61bps), and long (+4bps) segments following sell pressures on the FEB-2031 (+42bps), JUN-2033 (+64bps), and MAR-2036 (+32bps) bonds, respectively.
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