SAT DEC 13 2025-theGBJournal| The FGN bond secondary market turned bearish ahead of Monday’s FGN Bond Auction as traders unwound positions in anticipation of higher supply. The average yield rose by 99bps at 16.6%.
Across the benchmark curve, the average yield increased at the short (+103bps), mid (+143bps), and long (+50bps) segments following sell pressures in the AUG-2030 (+182bps), JUL-2034 (+155bps), and MAR-2036 (+132bps) bonds, respectively.
Notably, an FGN bond PMA is scheduled for next Monday with N230.00 billion offered apiece across the AUG-2030 and JUN-2032 papers.
The Debt Management Office (DMO) will hold its final FGN Bond auction of the year next Monday, 15 December, at which it plans to offer N230.00 billion apiece for the AUG-2030 and JUN-2032 maturities.
Treasury Bills
The Treasury bills market closed the week on a bearish note as market participants unwound positions to fund participation in the ad-hoc NTB PMA conducted on Wednesday, 10 December 2025.
As a result, the average yield across all instruments increased by 40bps to 19.7%. Across segments, average NTB yields climbed by 74bps to 17.7% while average OMO yields decreased by 20bps to 21.8%.
Meanwhile, the Central Bank of Nigeria (CBN) conducted two OMO auctions during the week.
The first, held on Tuesday, featured N600.00 billion on offer across the 98-Day and 140-Day maturities but closed with no allotment.
The second auction on Thursday, also with N600.00 billion on offer across the 180-Day and 215-Day tenors, saw a robust outcome, with N1.32 trillion allotted at stop rates of 19.39% and 19.49%, respectively.
At the Money Market, the OVN rate expanded slightly by 3bps to 22.8% following debits for the OMO PMA (N1.32 trillion), amid inflows of N1.07 trillion from OMO maturities.
Nonetheless, the average system liquidity improved, closing at a net long position of N3.54 trillion (prior week: NN2.93 trillion).
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