Bond, T-Bill Inflows Reverse Money Market Liquidity Deficit
The money market liquidity improved following inflows from matured bonds and Nigerian treasury bills. The market experienced liquidity fluctuation that plunged liquidity into deficit after the OMO bills settlement during the week.
However, system liquidity improved with a surplus balance of ₦2.58 trillion on Thursday, recovering from the previous day’s deficit. This improvement was driven by ₦1.27 trillion inflow from the 22-Jan-2026 bond maturity and ₦725.19 billion NTB maturity, AIICO Capital Limited said in its market report.
The market also witnessed substantial placements at CBN’s Standing Deposit Facility (SDF) window, totaling ₦1.4 trillion, enhancing the financial system liquidity condition.
However, these inflows were slightly offset by ₦1.06 trillion Nigerian Treasury bills settlement for the midweek auction conducted by the Apex Bank.
Consequently, average funding cost eased by 2bps to 22.63% as Open Repo Rate (OPR) held steady at 22.50%, while the Overnight Rate (OVN) shed 5bps to 22.75%. The market expects funding cost to remain at range bound, barring any funding activity.
In the Treasury Bills segment, secondary market yields declined across all tenors, with the 1-month, 3-month, 6-month, and 12-month maturities dropping by 60bps, 36bps, 17bps, and 2bps, respectively, supported by a ₦725.19 billion T-Bills maturity on Thursday.
The overall T-Bills average yield surged 28bps to 18.43%, indicating diminished investor confidence and a less supportive environment in the secondary market. Nigeria’s Non-oil Export Rises by 11.5% to $6.1bn in 2025
