WED JUNE 10 2026-theGBJournal| Nigeria’s money and fixed-income markets recorded broad-based gains on Tuesday as investors increased demand for Treasury bills and Federal Government bonds, pushing yields lower across most tenors, while the naira strengthened further against the U.S. dollar in the official foreign-exchange market.
Liquidity conditions in the banking system remained largely stable, helping to ease short-term funding costs.
The overnight lending rate declined by 3 basis points to 22.1%, reflecting the absence of significant liquidity pressures and a relatively balanced funding environment among financial institutions.
In the Treasury bills secondary market, sentiment remained positive as investors sought attractive short- and medium-dated instruments.
The average yield fell by 5 basis points to 17.5%, extending the recent trend of declining rates amid sustained demand.
Across the yield curve, the strongest buying interest was concentrated at the short and mid segments.
Average yields at the short end declined by 21 basis points, driven primarily by demand for the 31-day-to-maturity bill, whose yield compressed by 33 basis points.
Similarly, yields in the mid-tenor segment fell by 10 basis points as investors accumulated the 178-day bill, resulting in a 37-basis-point decline in its yield.
The long end of the Treasury bill curve, however, experienced mild profit-taking activity.
Average yields edged up by 1 basis point, largely due to selling pressure on the 255-day bill, whose yield increased by 54 basis points as investors locked in gains following recent price appreciation.
Activity in the Open Market Operations (OMO) segment diverged from the broader Treasury bill market.
The average yield in the OMO market rose by 5 basis points to 21.0%, suggesting a more cautious stance among investors toward the higher-yielding central bank instruments.
Meanwhile, the Federal Government bond market also posted gains, supported by renewed investor appetite for sovereign debt.
The average secondary-market bond yield declined by 5 basis points to 16.2%, underscoring continued demand for duration despite lingering uncertainty over the future path of interest rates.
Performance across the benchmark bond curve was mixed.
The short end outperformed, with average yields declining by 17 basis points following strong demand for the August 2030 bond, whose yield dropped by 51 basis points.
In contrast, the mid-tenor segment came under slight pressure as investors sold the April 2032 bond, pushing its yield up by 4 basis points and lifting average mid-curve yields by 1 basis point.
At the long end, yields were largely unchanged as buying and selling interests remained balanced, leaving the segment flat on the day.
In the foreign-exchange market, the naira continued its recent appreciation trend.
The currency strengthened by 0.3% at the official market to close at NGN1,364.00 per U.S. dollar, supported by improved foreign-exchange supply conditions and continued market confidence in the stability of the exchange-rate framework.
The decline in fixed-income yields across major asset classes points to sustained investor demand for government securities, even as market participants continue to monitor liquidity conditions, inflation dynamics and monetary policy signals from the Central Bank of Nigeria.
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Nigeria’s money and fixed-income markets recorded broad-based gains on Tuesday as investors increased demand for Treasury bills and Federal Government bonds, pushing yields lower across most tenors, while the naira strengthened
