Continuous Mop-Ups Dampen Sentiment in T-Bills Market

By Vetiva Research

The Central Bank of Nigeria (CBN) conducted an OMO auction yesterday, offering N5 billion and N20 billion on the 192DTM and 360DTM bills respectively.

The apex bank eventually sold N9.5 billion across both bills at respective stop rates of 17.95 percent and 18.55 percent (effective yield: 19.82 percent and 22.70 percent).

Interbank Call rate advanced in yesterday’s session, settling at 96.67 percent (Previous: 55.83 percent).

On the currency front, the Naira depreciated N1.00 to close at N366.50 at the parallel market and appreciated N2.28 at the I&E FX Window to close at N362.50.

Trading in the T-bills market was quite mixed at week open as yields trended in opposite directions across board.

Overall, yields rose 2bps on average across traded maturities with the largest yield movements recorded on the 52DTM (+110bps to 20.51 percent) and 31DTM (-106bps to 18.91 percent) bills.

The bond market however traded bearish as yields on benchmark bonds notched 8bps on average, driven by selloffs across the curve.

Particularly, yields on the 12.50 percent FGN JAN 2026 and 12.40 percent FGN MAR 2036 bonds advanced 27bps and 15bps to close at 16.52 percent and 16.54 percent respectively.

We expect the overarching bearish sentiment in the fixed income market to persist in today’s session, even as system liquidity remains constrained, amidst further OMO auctions.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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