SAT JUNE 21 2025-theGBJournal| The Treasury bills average yield across all instruments rose by 27bps to 23.6% by close of trade on Friday.
Across the market segments, the average yield declined by 13bps to 20.5% in the NTB segment as market participants filled unmet bids from the NTB PMA, while it advanced by 75bps to 26.7% in the OMO segment as investors sold off bills to participate at the OMO auction.
At Wednesday’s NTB auction, the Central Bank of Nigeria (CBN) offered bills worth N162.02 billion – N22.02 billion for the 91D, N40.00 billion for the 182D, and N100.00 billion for the 364D bills.
Total subscription levels settled at N1.23 trillion (previous auction: N1.31 trillion), indicating a bid-to-offer ratio of 7.6x (previous auction: 2.9x).
The auction closed with the CBN allotting exactly the total amount offered – NGN37.98 billion for the 91D, N40.54 billion for the 182D, and N83.50 billion for the 364D papers – at respective stop rates of 17.80% (previous: 17.98%), 18.35% (previous: 18.50%) and 18.84% (previous: 19.35%).
The CBN also conducted an OMO auction on Monday (June 16), offering instruments worth N600.00 billion – N300.00 billion for the 155D and N300.00 billion for the 204D.
The auction was met with strong demand with total subscription settling at NGN1.15 billion (bid-to-offer: 1.9x), with the CBN allotting a total of NGN1.07 trillion across the two tenors at respective stop rates of 24.20% and 24.59%.
We expect the liquidity influx to drive demand for bills, causing yields in the Treasury bills secondary market to remain suppressed, possibly tapering further.
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