MON MAY 11 2026-theGBJournal| Liquidity conditions in the money market remained tight on Monday, with the overnight lending rate rising marginally by 2bps to 22.1% amid the absence of significant inflows into the financial system.
Despite the liquidity strain, investor appetite across the fixed income market stayed firm, supporting bullish sentiment in both the Treasury bills and FGN bond secondary markets.
In the Treasury bills secondary market, bullish sentiment persisted as the average yield declined by 2bps to 17.5%.
Across the curve, yields contracted at the short (-4bps) and long (-4bps) ends, driven by sustained demand for the 87DTM (-16bps) and 346DTM (-18bps) instruments, respectively.
However, the mid segment recorded a slight yield increase of 2bps following sell pressures on the 122DTM bill, which expanded by 10bps. In the OMO market, the average yield also declined by 4bps to 21.0%.
Similarly, the FGN bond secondary market closed on a bullish note, with the average yield easing by 1bp to 15.7%.
Across the benchmark curve, yields at the short end declined by 3bps, supported by buying interest in the AUG-2030 bond, whose yield fell by 10bps.
Meanwhile, yields at the mid and long segments closed flat.
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