MON JUNE 15 2026-theGBJournal|Nigeria’s money market tightened Monday, with the overnight lending rate rising by 7 basis points to 22.2% amid a lack of significant liquidity inflows into the banking system, reflecting sustained funding pressures among market participants.
In the Treasury bills secondary market, trading activity remained largely subdued as investors adopted a cautious stance.
The average yield closed unchanged at 17.7%, masking mixed performance across the curve. At the short end, yields declined marginally by 1 basis point, supported by demand for the 52-day bill, whose yield fell 20 basis points.
The long end also recorded modest bullish sentiment, with the average yield easing by 2 basis points following buying interest in the 353-day bill, which compressed by 16 basis points.
However, the mid-tenor segment came under pressure, with the average yield rising by 5 basis points as investors took profits on the 129-day bill, causing its yield to jump 51 basis points.
Meanwhile, activity in the Open Market Operations (OMO) segment remained bearish, with the average yield climbing 8 basis points to 21.0%.
The Federal Government bond (FGN Bond)market also weakened, extending recent losses as investors continued to trim positions. Average benchmark bond yields rose by 22 basis points to 16.6%.
Across the curve, performance was mixed. The short end benefited from demand for the March 2027 bond, driving its yield down by 18 basis points and pulling the segment average lower by 5 basis points.
Similarly, buying interest in the April 2037 bond compressed its yield by 11 basis points, resulting in a 3-basis-point decline at the long end.
Nevertheless, heavy sell-offs in the belly of the curve overshadowed gains elsewhere, with the average mid-segment yield surging by 95 basis points.
The sharpest move was recorded on the April 2029 bond, whose yield spiked by 238 basis points amid significant selling pressure, underscoring investors’ preference for shorter-dated instruments and continued caution toward duration risk.
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