TUE JAN 13 2026-theGBJournal| The Nigerian fixed income market traded on cautious note on Tuesday, with the FGN Bond and Treasury Bills yield rising amid robust demand and sell pressures.
The NTB secondary market traded on a quiet note albeit with a bearish tilt, as the average yield expanded by 1bp to 18.0%.
Across the curve, the average yield expanded at the mid (+7bps) segment due to selloffs of the 114DTM (+53bps) bill but contracted at the short (-1bp) and long (-2bps) ends, driven by the demand for the 86DTM (-1bp) and 359DTM (-17bps) bills, respectively.
Conversely, the average yield contracted by 1bp to 21.5% in the OMO segment.
Last week, the Debt Management Office (DMO) offered N1.15 trillion at the Nigerian Treasury Bills (NTB) primary market across the 91, 182, and 364-day tenors. Demand was robust, with total subscriptions reaching N1.54 trillion, translating to a bid-to-cover ratio of 1.34x.
Consequently, the DMO sold N1.14 trillion, largely in line with the amount on offer, while stop rates increased across all maturities. The 91-day billrose by 30bps to clear at 15.80% p.a., the 182-day bill increased by 55bps to 16.50% p.a., and the 364-day bill climbed by 96bps to settle at 18.47% p.a.
In addition, the Central Bank of Nigeria (CBN) conducted an auction offering N600 billion across 161-day and 210-day bills.
Total subscriptions came in at N2.72 trillion, with allotments amounting to N2.71 trillion. Notably, the CBN sold the entirety of bids worth N2.45trn at the longer-dated tenor.
Overall, this resulted in a bid-to-cover ratio of 1.01x across all tenors.
Similarly, the Treasury bond secondary market closed on a bearish note, as the average yield expanded by 24bps to 16.8%.
Across the benchmark curve, the average yield expanded at the short (+46bps), mid (+10bps) and long (+12bps) segments driven by the sell pressures on the JAN-2026 (+223bps), JUN-2033 (+39bps) and JUN-2038 (+58bps) bonds, respectively.
The Eurobond market also closed bearish, as average yields increased by 20bps to 7.24% p.a.
Meanwhile, the overnight lending rate expanded by 2bps to 22.7% in the absence of any significant inflows into the system, while the Open Repo Rate (OPR)remained unchanged at 22.50%.
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