In April 2025, the financial system was characterized by substantial liquidity as the Open Buy Back and Overnight lending rates averaged 26.81% and 27.23%, compared to 30.17% and 30.63% respectively in the previous month. We note that this was buoyed by inflows from OMO maturities of about NGN651.00bn, FAAC disbursement and FGN coupon inflows, which were substantial enough to offset the pressure from various primary market auctions and keep liquidity afloat. In the same period, we observed that activities at the discount window reflected surplus system liquidity. 

For the month of May, we expect a tepid performance across the treasury bills and bond market, with little to no change in yields. This should be driven by market liquidity conditions, CBN policy decision and DMO s borrowing appetite in the period. We expect stop rates at the primary market auctions to print around similar levels as seen from recent auctions, with investors aiming for higher rates, while the debt authorities try to manage the costs of borrowing. At the secondary market, we envisage mixed trading sessions, as investors continue to trade cautiously in the market.

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