TUE JUNE 23 2026-theGBJournal|The overnight lending rate fell 12 basis points to 22.3%, reflecting liquidity conditions in the banking system despite debits of roughly N2.67 trillion related to the settlement of Open Market Operation (OMO) primary market auctions.
The moderation in funding costs suggests that residual system liquidity remained sufficient to cushion the impact of the CBN’s aggressive liquidity mop-up.
Activity in the Treasury bill secondary market was subdued, with a bearish undertone pushing the average yield up by 1 basis point to 18.2%.
Across the curve, investor demand for shorter-dated instruments supported the front end, where average yields declined by 5 basis points, driven largely by buying interest in the 87-day bill, whose yield compressed by 23 basis points.
The mid-segment was broadly unchanged, while the long end weakened as investors reduced exposure to longer-dated securities, sending the yield on the 346-day bill up by 48 basis points and lifting average long-tenor yields by 5 basis points.
The OMO market also reflected weaker sentiment, with the average yield rising 8 basis points to 21.2%, indicating that investors continued to demand higher returns on central bank instruments amid expectations of elevated interest rates and persistent inflation risks.
In the sovereign debt market, Federal Government of Nigeria bonds (FGN Bonds) traded on a bearish note as the average benchmark yield climbed 10 basis points to 16.7%.
Selling pressure was evident across the curve, with yields rising 4 basis points at the short end, 5 basis points in the belly of the curve and 18 basis points at the long end.
The move was driven by profit-taking in key benchmark issues, including the February 2031 bond, whose yield increased 13 basis points, the June 2033 bond, which rose 27 basis points, and the June 2038 bond, which jumped 46 basis points.
Meanwhile, the naira depreciated 0.2% in the official foreign-exchange market to close at N1,368.50 per dollar, reversing part of its recent gains.
The currency’s weakness came despite Nigeria’s robust reserve position, which has strengthened significantly in recent times.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
