Cordros Capital Projects N11 Trillion Inflows for October

Cordros Capital forecasts that Nigeria's fixed-income market will experience approximately N11 trillion in liquidity inflows during October 2026. This projection includes N9.05 trillion from Open Market Operations (OMO) maturities, N1.30 trillion from Nigerian Treasury Bill (NTB) maturities, and N650.67 billion from FGN bond coupon payments.

The firm anticipates that this liquidity will bolster demand, particularly at the short end of the market. However, new OMO and NTB issuances may absorb a significant portion of these inflows, potentially limiting their impact on yields.

The OMO maturities represent the largest expected source of liquidity, accounting for about 82% of the total estimate. Cordros also noted that September's inflows of N13.14 trillion from maturing OMO securities had previously fueled reinvestment demand, contributing to a decline in average FGN bond yields.

Factors such as inflation and government issuance could hinder a significant decline in yields, despite the expected support from liquidity and foreign demand.