SAT AUG 23 2025-theGBJournal| Proceedings in the Treasury bills secondary market closed bearish on Friday as the average yield across all instruments advanced by 59bps to 22.0%.
Across the market segments, the average yield expanded by 42bps to 18.4% and 98bps to 25.5% in the NTB and OMO segments, respectively.
At Wednesday’s NTB auction, the Debt Management Office (DMO) offered bills worth N230.00 billion – N50.00 billion for the 91D, N30.00 billion for the 182D, and N150.00 billion for the 364D bills.
Total subscription levels settled higher at N396.42 billion (previous auction: N366.55 billion), indicating a bid-to-offer ratio of 1.3x (previous auction: 1.1x).
The auction closed with the DMO over-allotting to the tune of N303.69 billion – N7.70 billion for the 91D, N27.70 billion for the 182D, and N268.28 billion for the 364D papers – at respective stop rates of 15.35% (previous:15.00%), 15.50% (unchanged) and 17.44% (previous: 16.50%).
Meanwhile, the OMO PMA saw even stronger demand.
The Central Bank of Nigeria (CBN) offered N600.00 billion across 89D and 124D bills but recorded robust subscriptions of N1.02 trillion (bid-to-offer ratio: 1.7x).
The apex bank allotted N897.20 billion, exceeding the offer amount, with stop rates printing steeply higher at 25.50% (89D) and 25.99% (124D), underscoring efforts to aggressively sterilise excess liquidity.
Looking ahead, we anticipate that the expected system liquidity will drive demand for bills, resulting in a tapering of yields in the secondary market.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
