FRI JUNE 19 2026-theGBJournal|Nigeria’s money market remained largely stable on Thursday, with the overnight lending rate easing slightly as liquidity conditions stayed comfortable and funding pressures across the banking system remained muted.
The overnight rate slipped by 2 basis points to 22.2%, reflecting ample liquidity and the absence of any significant demand for short-term funds among lenders.
Trading in the Treasury bill secondary market, however, maintained a bearish bias, pushing the average yield higher by 2 basis points to 17.9%.
Activity across the curve was mixed, with investors selectively accumulating shorter-dated instruments while offloading longer-tenor papers.
At the short end, the average yield declined by 4 basis points, supported by strong demand for the 21-day-to-maturity bill, whose yield compressed by 59 basis points.
The mid-segment also recorded buying interest, with average yields falling by 8 basis points, largely driven by demand for the 112-day instrument, which saw its yield decline sharply by 109 basis points.
Selling pressure was concentrated at the long end of the curve, where the average yield climbed by 12 basis points.
The move was primarily triggered by profit-taking on the 308-day Treasury bill, whose yield rose by 102 basis points, underscoring investors’ preference for shorter-duration assets amid prevailing market conditions.
In the Open Market Operations (OMO) segment, bearish sentiment persisted as the average yield increased by 12 basis points to 20.9%, indicating sustained repricing across the market.
Meanwhile, trading in the Federal Government bond market was relatively subdued, though the tone remained mildly bullish.
Average benchmark yields edged lower by 1 basis point to 16.6%, reflecting selective demand across medium- and long-dated maturities.
Yield movements across the benchmark curve were uneven.
The short end came under pressure, with the average yield rising by 8 basis points due to profit-taking on the February 2028 bond, whose yield advanced by 37 basis points.
In contrast, renewed investor demand supported the belly and long ends of the curve.
Average yields at the mid-segment declined by 4 basis points, led by buying interest in the June 2033 bond, which compressed by 18 basis points, while yields at the long end fell by 5 basis points as investors accumulated the June 2038 issue, driving its yield down by 50 basis points.
In the foreign exchange market, the naira strengthened marginally at the official window, with the exchange rate appreciating by 4 basis points to close at N1,361.90 per U.S. dollar, extending recent signs of stability in the currency market amid improved supply conditions.
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