SAT OCT 11 2025-theGBJournal| The Treasury bills secondary market traded bullishly this week, as unmet demand from the NTB PMA was absorbed in the secondary market.
Consequently, the average yield decreased by 21bps w/w to 18.9%. By segment, NTB yields fell 41bps to 17.4%, while OMO yields advanced by 7bps to 20.6%.
At Wednesday’s NTB auction, the Central Bank of Nigeria (CBN) offered bills worth N570.00 billion – N100.00 billion for the 91D, N120.00 billion for the 182D, and N350.00 billion for the 364D bills.
Total subscription moderated to N1.06 trillion (previous auction: N1.59 trillion), indicating a bid-to-offer ratio of 1.9x (previous auction: 5.9x).
The auction closed with the CBN allotting exactly what was offered – N25.37 billion for the 91D, N41.33 billion for the 182D, and N503.30 billion for the 364D papers – at respective stop rates of 15.00% (unchanged), 15.25% (previous: 15.30%) and 15.77% (previous: 16.78%).
The CBN also conducted an OMO auction on October 6, offering N600.00 billion worth of bills.
Total subscriptions reached N4.13 trillion, representing a bid-to-offer ratio of 6.9x. Eventually, only N998.10 billion was allotted, with stop rates of 20.08%, 20.13%, and 20.17% on the 85D, 99D and 120D maturities, respectively.
Additionally, on October 7, there was another N600.00 billion OMO auction which drew subscriptions of N4.43 trillion, with N3.04 trillion allotted – N1.34 trillion for the 168D and N1.70 trillion for the 196D at stop rates of 19.45% and 19.49%, respectively.
The CBN ended the week with another OMO auction today (October 10), offering N600.00 billion worth of bills. Total subscriptions reached N2.08 trillion, representing a bid-to-offer ratio of 3.5x.
Accordingly, N1.28 billion was allotted, with stop rates of 19.35%, 19.39%, and 19.44% on the 81D, 109D and 151D maturities, respectively.
With system liquidity expected to remain ample, demand for bills is likely to remain strong, reinforcing the ongoing moderation in yields
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