THUR MAR 19 2026-theGBJournal| The naira strengthened sharply by 2.0% to N1,357.45/US$ in the latest session, driven by supply from IOCs and offshore investors as well as sustained market confidence, even as investors turned cautious in the fixed income space.
The currency’s rebound reflects ongoing support from inflows and policy measures aimed at stabilizing the FX market.
In the forwards market, the naira rates appreciated across the 1-month (+1.6% to N1,378.57/US$), 3-month (+1.6% to N1,415.22/US$), 6-month (+1.6% to N1,468.56/US$) and 1-year (+1.4% to N1,575.24/US$) contracts.
Elsewhere, after eleven consecutive weeks of increases, the gross FX reserves declined by US$108.22 million w/w to US$50.03 billion (March 16).
Meanwhile, activity across the fixed income market was mixed, with divergent movements observed along the yield curve as participants assessed the implications of the March primary market auction circular.
The Treasury Bills average yield fell by 22bps to 19.0%.
By segments, NTB yields increased by 4bps to 17.7% as investors unwound positions ahead of the NTB PMA, while OMO yields declined by 22bps to 20.6% as the absence of an OMO PMA redirected demand to the secondary market.
The FGN bond market was quiet, albeit with a bearish tone, as the average yield rose 1bp to 15.8%. Across the curve, the average yield increased at the short end (+3bps), following sell pressure on the MAR-2037 (+26bps) bond, while it closed flat at the mid and long ends.
The OVN rate declined by 13bps to 22.2%, supported by N785.75 billion in inflows from OMO maturities and N140.55 billion in FGN bond coupon payments.
Accordingly, system liquidity remained robust, settling at an average net long position of N7.56 trillion, compared with N6.52 trillion in the prior week.
Overall, sentiment remains cautiously optimistic, with the stronger naira providing a near-term anchor for market stability.
However, attention is firmly on the upcoming auction and broader macro signals, which are expected to shape yield direction and investor positioning in the weeks ahead.
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