Close Menu
    Subscribe
    Tuesday, May 19
    MarketNews

    Bond, T-Bill Inflows Reverse Money Market Liquidity Deficit

    Olu AnisereBy Updated:No Comments2 Mins Read
    Bond, T-Bill Inflows Reverse Money Market Liquidity Deficit
    Yemi Cardoso, CBN Gov

    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

    Share.

    Olu Anisere is a financial and economic journalist at MarketForces Africa, specialising in African macroeconomic policy, international finance, energy markets, and continental development.He covers major multilateral institutions, including the International Monetary Fund (IMF), World Bank, and the United Nations Economic Commission for Africa (ECA), providing readers with frontline reporting on policies shaping Africa's economic trajectory.Olu has reported extensively on Nigeria's fiscal and monetary policy landscape, including CBN interest rate decisions, Nigeria's bond market, FX inflows, and the country's engagement with global financial institutions.His coverage spans IMF and World Bank Spring and Annual Meetings, African Ministers of Finance conferences, and high-level economic forums where Africa's development agenda is set.His reporting captures perspectives from Africa's most influential economic voices, including Tony Elumelu, senior IMF officials, and CBN leadership, bringing institutional insight and policy depth to MarketForces Africa's readers.Olu also covers Inside Africa — tracking economic, investment, and development stories from across the continent. Olu Anisere is based in Lagos, Nigeria.

    Related Posts

    Add A Comment

    Comments are closed.