FRI JUNE 06 2025-theGBJournal| Treasury bills average yield across all instruments fell by 3bps to 23.0% by close of trade on Thursday.
The market was broadly quiet, albeit with a bullish undertone, driven by market participants looking to fill unmet bids from the PMA.
Across the market segments, the average yield declined by 4bps to 20.7% in the NTB segment, while it advanced by 10bps to 25.8% in the OMO segment.
At Wednesday’s NTB auction, the Debt Management Office (DMO offered bills worth N450.00 billion – N50.00 billion for the 91D, N100.00 billion for the 182D, and N300.00 billion for the 364D bills.
Total subscription levels settled higher at N1.31 trillion (previous auction: N1.17 trillion), indicating a bid-to-offer ratio of 2.9x (previous auction: 2.3x).
The auction closed with the Debt Management Office (DMO) allotting exactly the total amount offered – N50.00 billion for the 91D, N30.03 billion for the 182D, and N369.97 billion for the 364D papers – at respective stop rates of 17.98% (previous: 18.00%), 18.50% (unchanged) and 19.35% (previous: 19.56%).
The Central Bank of Nigeria (CBN) conducted an OMO auction on Monday (2 June), offering instruments worth N600.00 billion – N300.00 billion for the 106D and N300.00 billion for the 232D.
The auction was met with strong demand with total subscription settling at NGN1.53 billion (bid-to-offer: 2.5x), with the CBN allotting N1.51 trillion – N204.87 billion for the 106D and N1.31 trillion for the 232D at respective stop rates of 24.20% and 24.64%.
Similarly, the FGN bond secondary market was quiet, as the average yield closed flat at 18.9%.
Across the benchmark curve, the average yield increased at the short (+4bps) end, driven by selloffs of the JAN-2026 (+14bps) bond, while it decreased at the mid (-9bps) and long (-6bps) segments following demand for the APR-2032 (-32bps) and MAR-2036 (-29bps) bonds, respectively.
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