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The Central Bank of Nigeria (CBN) held two open market operations (OMO) auctions during the week, each with a N600 billion offer.
The first auction, across 56-day and 84-day maturities, attracted N1.18 trillion in total bids. Stop rates cleared at 21.69% and 21.84%, with N273.60 billion allotted.
The second auction offered 53-day and 81-day bills and recorded strong demand of N1.30 trillion, clearing at 21.69% and 21.83%, respectively with total allocation at N1.15 trillion.
The CBN also held its first Treasury bills (T-bills) auction for the month, offering a total of N650 billion across the three maturities. Investors interest was robust with total subscription amounting to N1.18 trillion.
Ultimately, the CBN allotted N546.44 billion across all tenors, and maintained stop rates at 15.30% and 15.50% respectively for the 91 and 182-day bills, while stop rate for the 364-day bill declined by 10 basis points (bps) to 14.04%.
The T-bills secondary market closed the week on a bullish note, with the average yield declining by 7 basis points to 17.39%, supported by broad-based demand across most maturities.
Notable contractions were recorded on the FEB-26 (-56bps), SEPT-26 (-23bps), and OCT-26 (-21bps) bills.
However, some profit-taking was observed on select papers, particularly the JAN-26 bill and JUL-26, which saw yields expand by 65bps and 32bps respectively.
The bond market closed the week on a quiet yet bullish tone, with the average yield declining by 12bps to 15.77%.
Buying interest remained concentrated in the short- to mid-tenor segment, particularly in the JUL-2034 (-44bps), MAR-2026 (-39bps) and FEB-2028 (-33bps) papers.
In contrast, activity across the long end of the curve was largely muted, with minimal price movements.
Following the successful new Eurobond issuance of USD2.35bn, the Eurobond secondary market ended the week bearish as the average yield increased by 32bps to 7.97% from 7.66% in the previous week.
This bearish sentiment conflicted with the sentiment seen in the primary market as sell-offs were notable across the yield curve. The short end reported the most rise in NOV-25 (116bps), NOV-27 (45bps), SEP-28 (34bps) and MAR-29 (31bps) bonds, as investors remain cautious amid geopolitical tension, according to Meristem Securities.
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