SAT MAY 03 2025-theGBJournal| The Treasury bills secondary market traded with bullish sentiments on Friday driven by the robust system liquidity.
The average yield declined by 14bps to 23.7%. Across the market segments, the average yield declined by 11bps to 27.0% in the OMO segment, while it advanced by 25bps to 21.1% in the NTB segment.
The CBN conducted an OMO auction on Tuesday (April 29), offering instruments worth N500.00 billion – N250.00 billion for the 329D and N250.00 billion for the 350D – to investors.
Total subscription settled at NGN1.06 trillion (bid-to-offer: 2.1x), with the CBN eventually allotting N804.85 billion – N106.25 billion for the 329D and N698.60 billion for the 350D.
Looking ahead, we expect the still healthy system liquidity to continue to spur the demand for bills, causing yields to gradually decline.
Additionally, the Debt Management Office (DMO) is scheduled to conduct an NTB PMA next Wednesday (May 7) with N550.00 billion worth of maturing bills on offer. At the auction, we expect stop rates to taper, albeit marginally.
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