FRI FEB 27 2026-theGBJournal| Treasury bills and Federal Government of Nigeria (FGN) bond yields declined across key tenors on Thursday, signaling renewed buying interest in the fixed income market even as pressure mounted in the currency space.
Treasury bills average yield unchanged at 17.2%. Across the curve, the average yield contracted at the short (-1bp) and mid (-1bp) segments, due to the demand for the 84DTM (-1bp) and 175DTM (-1bp) bills, respectively, but remained unchanged at the long end.
Meanwhile, the average yield expanded by 40bps to 20.8% in the OMO segment.
The FGN bond secondary market closed on a bullish note, as the average yield also fell by 1bp to 15.4%.
Across the benchmark curve, the average yield contracted at the mid (-2bps) segment due to buying interest in the APR-2032 (-18bps) bond but closed flat at the short and long ends.
The drop in yields suggests investors are locking in rates amid expectations of easing liquidity conditions and potential policy recalibration.
Across the curve, demand strengthened at recent primary and secondary market sessions, pushing prices up and yields lower.
However, the optimism in bonds contrasted sharply with developments in the foreign exchange market, where the naira weakened against the dollar.
The currency’s fell 1.4% to N1,370.00/US$, underscoring the persistent FX demand pressures and highlights the delicate balance policymakers must manage between stabilizing prices, supporting growth, and defending the local unit.
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