SAT AUG 09 2025-theGBJournal| The Treasury bills secondary market mixed by close of trade Friday, driven by selloffs by market participants to participate in the OMO and NTB auctions conducted during the week.
The average yield across all instruments declined by 2bps to 21.4%. Across the market segments, the average yield advanced by 15bps to 17.9% in the NTB segment, while it declined by 17bps to 24.6% in the OMO segment.
At Wednesday’s NTB auction, the Central Bank of Nigeria (CBN) offered bills worth N220.00 billion – N60.00 billion for the 91D, N20.00 billion for the 182D, and N140.00 billion for the 364D bills.
Total subscription levels settled at NGN366.55 billion (previous auction: N675.66 billion), indicating a bid-to-offer ratio of 1.7x (previous auction: 2.3x).
The auction closed with the CBN under-alloting to the tune of N173.83 billion – N15.33 billion for the 91D, NGN18.32 billion for the 182D, and N139.59 billion for the 364D papers – at respective stop rates of 15.00% (unchanged), 15.50% (unchanged) and 16.50% (previous: 15.88%).
Also, the CBN conducted an OMO auction on Tuesday, offering instruments worth NGN600.00 billion – N300.00 billion for the 105D and N300.00 billion for the 245D.
Total subscription levels settled at N2.28 trillion (bid-to-offer ratio: 3.8x), with the CBN allotting N2.12 trillion for the 245D bill only, at a stop rate of 23.7%.
The FGN bond secondary market was bearish this week as the stronger-than-expected print of the OMO PMA increased sell pressures. Accordingly, the average yield for bonds advanced by 12bps to 16.5%.
Across the benchmark curve, the average yield increased at the short (+24bps) and mid (+2bps) segments driven by demand for the MAR-2027 (+33bps) and APR-2032 (+46bps) bonds, respectively, while it closed flat at the long end.
A total of 85,480 units valued at N79.362 million were traded this week in 31 deals compared with a total of 1.360 units valued at N1.118 million transacted last week in 30 deals.
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