SAT AUG 02 2025-theGBJournal| The Treasury bills market traded with bearish sentiments as market players anticipated a second OMO auction from the CBN to manage the buoyant system liquidity.
The average yield across all instruments advanced by 11bps to 21.4%.
Across the market segments, the average yield advanced by 7bps and 4bps to 17.8% and 24.7% in the NTB and OMO segments, respectively.
The CBN conducted an OMO auction on Monday, offering instruments worth N600.00 billion – N300.00 billion for the 113D and N300.00 billion for the 204D.
Total subscription levels settled at N1.63 trillion (bid-to-offer ratio: 2.7x), with the CBN allotting N1.55 trillion for the 204D bill only, at a stop rate of 23.87%.
Meanwhile, the overnight (OVN) rate declined by 2bps w/w to 26.9% driven by the strong liquidity open (N2.02 trillion), inflows from contractor payments (c. N300.00 billion) and FGN bond coupon payments (N41.28 billion), which offset debits for the FGN bond PMA (N185.93 billion).
Following the buoyant liquidity, the Central Bank of Nigeria (CBN) conducted an OMO PMA, mopping up N1.55 trillion.
Nonetheless, the average system liquidity remained robust, settling at a net long position of N1.19 trillion (compared to a net long position of N547.28 billion in the previous week).
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