OMO Bills Account for 72% of Nigeria’s N36.5 Billion Fixed-Income Trades in August

Open Market Operation bills dominated Nigeria’s fixed-income market in August, accounting for N26.19 billion, or 71.7%, of the N36.52 billion face value traded during the month.

Data from the Central Bank of Nigeria’s Fixed Income Dashboard showed 9,187 trades involving 29 participants between August 1 and 31. OMO bills generated 4,032 transactions. Treasury bills followed with N5.69 billion across 2,666 trades, while FGN bonds recorded N4.59 billion in 2,471 trades. Sukuk activity remained minimal, with 18 trades worth N40.11 million.

The market’s transaction count offered a different picture from its value distribution. Treasury bills and FGN bonds together produced 5,137 trades, more than the 4,032 recorded for OMO bills. OMO bills and Treasury bills each attracted 28 participants, compared with 26 for FGN bonds and five for Sukuk.

OMO bills also carried the highest reported yields. Their closing yield stood at 22.67%, against a weighted average yield of 20.96% for the displayed tenor. FGN bond closing yields ranged mainly from 16.23% to 17.30%, while weighted average yields shown on the dashboard were 17.10% and 17.23%.

The figures left August’s market activity heavily concentrated in the short-term OMO instrument, even as Treasury bills and FGN bonds accounted for a larger number of individual transactions.