Open Market Operation (OMO) yields declined across the curve on Tuesday as strong demand for the January 6, 2026 maturity bill drove investor interest and pushed yields lower.
Market data showed that the overall average yield fell by 44 basis points to 21 percent, compared to 21.44 percent recorded the previous day.
Yields dropped across short, medium, and long-term maturities, with declines of six basis points, 80 basis points, and 48 basis points, respectively.
The January 2026 bill led the rally, posting a sharp drop of 180 basis points on the back of robust investor appetite.
Analysts noted that the demand reflects confidence in short- to medium-term Nigerian debt instruments despite ongoing liquidity tightening measures by the Central Bank of Nigeria (CBN).
The decline in OMO yields followed heavy liquidity inflows into the system from CBN’s repayment of N731.13 billion in OMO maturities on September 30, coupled with recent disbursements from the Federation Account Allocation Committee (FAAC).
In September 2025 alone, the CBN repaid N1.2 trillion in OMO bills.
Despite the moderation in yields, banks’ opening balances slipped to N2.297 trillion on Tuesday, representing a 12.19 percent decline from the previous day.
The development underscores the impact of excess liquidity on the fixed-income market, with investors seeking attractive tenors while the CBN continues to balance monetary stability and inflation control.