Open Market Operation (OMO) yields declined throughout the curve on Tuesday as sturdy demand for the January 6, 2026 maturity invoice drove investor curiosity and pushed yields decrease.
Market knowledge confirmed that the general common yield fell by 44 foundation factors to 21 %, in comparison with 21.44 % recorded the day prior to this.
Yields dropped throughout brief, medium, and long-term maturities, with declines of six foundation factors, 80 foundation factors, and 48 foundation factors, respectively.
The January 2026 invoice led the rally, posting a pointy drop of 180 foundation factors on the again of sturdy investor urge for food.
Analysts famous that the demand displays confidence in short- to medium-term Nigerian debt devices regardless of ongoing liquidity tightening measures by the Central Bank of Nigeria (CBN).
The decline in OMO yields adopted heavy liquidity inflows into the system from CBN’s reimbursement of N731.13 billion in OMO maturities on September 30, coupled with current disbursements from the Federation Account Allocation Committee (FAAC).
In September 2025 alone, the CBN repaid N1.2 trillion in OMO payments.
Regardless of the moderation in yields, banks’ opening balances slipped to N2.297 trillion on Tuesday, representing a 12.19 % decline from the day prior to this.
The event underscores the affect of extra liquidity on the fixed-income market, with traders in search of engaging tenors whereas the CBN continues to steadiness financial stability and inflation management.