WED MAY 06 2026-theGBJournal| In the fixed income market Wednesday, system liquidity remained tight, pushing the overnight lending rate up by 4bps to 22.2% amid a lack of meaningful inflows.
The NTB secondary market traded quietly but with a bullish undertone, as average yields edged down by 1bp to 17.5%.
This modest compression was observed across all segments of the curve—short, mid, and long—driven by sustained demand for the 92-, 183-, and 351-day bills. Similarly, activity in the OMO segment reflected improved sentiment, with average yields declining by 7bps to 21.0%.
Conversely, the FGN bond secondary market weakened slightly, with average yields rising by 1bp to 15.7%.
The uptick was concentrated at the short and mid segments of the curve, following selloffs in the AUG-2030 and APR-2032 bonds, while the long end remained largely unchanged.
At today’s NTB primary market auction, investor appetite remained robust. The DMO offered N700.00 billion across tenors, attracting total subscriptions of N2.41 trillion—equating to a bid-to-offer ratio of 3.4x.
Ultimately, N731.75 billion was allotted, translating to a bid-to-cover ratio of 3.3x. Stop rates declined by 5bps for the 182-day and 364-day instruments to 16.14% and 16.15%, respectively, while the 91-day tenor held steady at 15.95%.
Overall, the auction results underscore strong demand for short-term government securities, even as liquidity constraints persist in the system.
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