|
Listen now
Getting your Trinity Audio player ready...
|
The Central Bank of Nigeria (CBN) conducted two OMO auctions during the week, offering a total of N1.20 trillion across 85- day, 99-Day, 120-Day, 168-Day, and 196-Day maturities.
The auction recorded a strong demand, with total subscriptions reaching N8.56 trillion and CBN allotting a total of N4.04 trillion at stop rates ranging between 19.45% and 20.17% across the tenors.
The bid-to-cover ratio jumped to 7.13, according to MoneyCentral calculations.
A high ratio (typically above 2.0) suggests strong demand and a successful auction. It can result in lower borrowing costs for the issuer because investors are willing to accept lower yields.
Nigeria’s Central Bank uses OMO to attract foreign portfolio investments as well as mop up excess liquidity. CBN dollar reserves have surged to $42.5 billion as at October 9, 2025.
At the T-Bills primary market auction (PMA) held during the week, the CBN offered a total of N570.00bn across the three maturities (vs N280.00bn at the previous auction).
Investors’ demand remained firm, with total subscription amounting to N1.06trn, resulting in a full allotment of N570.00bn.
Consequently, stop rate declined on the 182-day, and 364-day instruments, settling at 15.25%, and 15.77% (vs 15.30% and 16.78% in previous auction), while the 91-day tenor held steady at 15.00%.
The Fixed income secondary market maintained a bullish tone throughout the week, supported by ample system liquidity and sustained demand from local investors.
Average yields on Treasury bills declined to 17.36% from 17.93% in the previous week, as buying interest was concentrated in the mid- to long-dated papers, particularly the FEB-26 (-165bps), JAN-26 (- 146bps), and JUL-26 (-122bps).
In contrast, the SEPT-26 bill came under mild sell pressure, leading to a 19bps yield uptick, likely driven by profit-taking after prior gains.
The bullish sentiment extended to the bond market, where average yields moderated to 15.98% from 16.27%. Demand was most pronounced in both the short and long ends of the curve, with notable yield compressions in JAN-26 (-83bps), JUL-34 (- 57bps), and MAR-50 (-36bps).
Meanwhile, some investors took profits on mid-tenor bonds such as MAY-33 and JUN-33, resulting in marginal yield increases on those maturities.
However, the Eurobond market closed the week on a bearish note, with the average yield edging up to 8.06%, up from 7.90% in the prior week.
Sell-offs were observed across all curves, particularly the MAR-29, FEB-30, and FEB-32 which recorded yield increases of 49bps, 33bps and 25bps. In contrast, the NOV-25 was the standalone which recorded a yield decline of 49bps.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
 conducted two OMO auctions during the week, offering a total of N1.20 trillion across 85- day){kind=link}