SAT JAN 17 2026-theGBJournal| Despite the liquidity influx, the Treasury bills secondary market finished the week on bearish sentiments on Friday, broadly reflecting persistent supply overhang.
Consequently, the average yield across all instruments increased by 45bps to 20.3%. Across segments, average NTB yields increased by 11bps to 18.1%, while average OMO yields increased by 76bps to 22.4%.
Next week, yields in the T-bills market are likely to trend higher, as the DMO is set to offer N1.15 trillion in bills at Wednesday’s NTB auction (21 January). Anticipation of the sizeable primary market supply is expected to keep secondary market trading bearish, as investors redirect demand towards the auction in search of higher stop rates.
Average FGN bond yields also increased by 13bps to 16.9%, mirroring broader market dynamics. Across the curve, the average yield increased at the short (+14bps), mid (+12bps), and long (+12bps) segments driven by sell pressures on the JAN-2026 (+91bps), APR-2032 (+41bps), and JUN-2038 (+57bps) bonds, respectively.
The FGN bond market is expected to remain bearish next week, driven by continued upward repricing of yields.
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