SAT JULY 12 2025-theGBJournal| Nigerian Treasury bills yield closed lower this week as investors continued repricing yields downwards, aided by the FG curtailing the supply of instruments.
The average yield across all instruments declined by 136bps to 21.5%. Across the market segments, the average yield declined by 158bps and 103bps to 18.4% and 24.7% in the NTB and OMO segments, respectively.
At Wednesday’s NTB auction, the Central Bank of Nigeria (CBN) offered bills worth N250.00 billion – N100.00 billion for the 91D, N20.00 billion for the 182D, and N130.00 billion for the 364D bills.
Total subscription levels settled at N1.33 trillion (previous auction: N1.23 trillion), indicating a bid-to-offer ratio of 5.3x (previous auction: 7.6x).
The auction closed with the CBN significantly under-alloting to the tune of N201.82 billion – N59.84 billion for the 91D, N15.67 billion for the 182D, and N126.31 billion for the 364D papers – at respective stop rates of 15.74% (previous: 17.80%), 16.20% (previous: 18.35%) and 16.30% (previous: 18.84%).
Also, the CBN conducted an OMO auction on Wednesday, offering instruments worth N600.00 billion – N300.00 billion for the 272D and N300.00 billion for the 363D.
Total subscription levels settled at N2.17 trillion (bid-to-offer ratio: 3.6x), with the CBN allotting N1.25 trillion for the 363D bill only, at a stop rate of 21.99%.
Analysts expect bullish sentiments to persist in the Treasury bills secondary market
Bonds in the coming week.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
