MON MAY 04 2026-theGBJournal| Treasury market activity reflected broadly bullish sentiment on Monday, with declining yields across most segments as investors showed increased demand for government securities.
Strong liquidity conditions and selective buying interest, particularly in medium- to long-dated instruments, supported this trend, even as some short-term instruments experienced sell pressure.
In the Treasury bills secondary market, the average yield declined by 1 basis point to 17.5%.
Across the curve, yields rose at the short end by 7bps due to sell-offs in the 38-day-to-maturity bill, which spiked by 70bps.
In contrast, yields contracted at the mid and long segments by 3bps and 4bps respectively, driven by demand for the 171-day (-3bps) and 353-day (-4bps) bills.
Similarly, the OMO segment recorded a 2bps decline in average yield to 21.1%.
In the FGN bond secondary market, sentiment was also bullish, with the average yield falling by 2bps to 15.7%.
Yields declined across the short (-2bps), mid (-2bps), and long (-1bp) ends of the curve, supported by demand for the FEB-2031 (-9bps), APR-2032 (-12bps), and JUN-2038 (-10bps) bonds.
Meanwhile, the overnight lending rate eased by 6bps to 22.2% amid sustained surplus liquidity in the system.
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