SAT APRIL 05 2025-theGBJournal| The FGN bond secondary market ended week quiet, albeit with a bullish undertone as the average yield declined by 1bp to 18.7%.
This is attributed to the shortened trading week and investors’ anticipation of the Q2-25 auction calendar.
Overall, investors have portrayed more inclination toward short-dated bills/bonds. Across the benchmark curve, the average yield decreased at the short (-4bps) and mid (-1bp) segments following demand for the JAN-2026 (-21bps) and FEB-2031 (-7bps) bonds, respectively, while it closed flat at the long end.
The Treasury bills secondary market was bearish as the average yield expanded by 35bps to 21.8%. This is attributed to selloffs by offshore players in long-dated bills, which offset the increased demand driven by improved system liquidity.
Across the market segments, the average yield advanced by 43bps and 16bps to 19.9% and 24.4% in the NTB and OMO segments, respectively.
Meanwhile, the overnight (OVN) rate fell by 10bps w/w to 26.9% as inflows from OMO maturities (N651.86 billion) offset CRR debits (c. N400.00 billion), thereby boosting system liquidity.
Consequently, the average system liquidity improved, settling at a net long position of N1.33 trillion (vs a net long position of N29.28 billion in the previous week).
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