THUR MAR 12 2026-theGBJournal| Nigeria’s fixed income market closed on a bullish note as yields on Federal Government of Nigeria (FGN) bonds and Treasury bills declined across the curve, reflecting renewed investor demand and improved liquidity conditions.
The treasury bills average yield contracted by 1bp to 17.6%. Across the curve, the average yield contracted at the short (-1bp), mid (-1bp) and long (-2bps) segments, due to the demand for the 91DTM (-1bp), 175DTM (-1bp) and 357DTM (-11bps) bills, respectively.
Similarly, the average yield contracted by 4bps to 21.1% in the OMO segment.
Elsewhere, the FGN bond secondary market closed on a bullish note, as the average yield contracted by 1bp to 15.6%.
Across the benchmark curve, the average yield contracted at the short (-4bps) end, driven by demand for the AUG-2030 (-10bps) bond, but remained unchanged at the mid and long segments.
The rally in the debt market pushed prices higher, signaling a shift in sentiment as investors repositioned portfolios amid expectations of easing funding pressures.
Across the secondary market, buying interest was observed in both short- and long-tenor instruments, leading to a broad contraction in yields.
Market participants attributed the bullish momentum to sustained demand from institutional investors seeking relatively safe assets, alongside declining supply pressures in recent auctions.
Analysts note that the yield compression could persist in the near term if liquidity conditions remain supportive and investors continue to hunt for stable returns within the fixed income space. The trend also reflects a cautious investment stance as market players balance opportunities between the debt and equities markets.
The overnight lending rate expanded by 15bps to 22.3% in the absence of any significant funding pressure on the system.
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