THUR JUNE 25 2026-theGBJournal|Nigeria’s fixed-income market came under renewed selling pressure on Wednesday as investors locked in gains across Treasury bills, Open Market Operations (OMO) instruments and Federal Government bonds, pushing yields higher despite improved liquidity conditions in the banking system.
The overnight lending rate declined by 18 basis points to 22.2%, reflecting relatively comfortable system liquidity and the absence of significant funding pressures among lenders.
The moderation in interbank rates suggests that cash levels remained adequate even as investors repositioned portfolios across the fixed-income market.
In the Treasury bills secondary market, sentiment turned bearish as the average yield climbed 17 basis points to 18.3%.
Yield increases were recorded across all tenors, underscoring broad-based profit-taking activity following recent periods of strong demand.
The short end of the curve rose by 10 basis points, driven by sell-offs in the 78-day bill, whose yield expanded by 49 basis points.
The mid-tenor segment added 9 basis points as investors exited positions in the 148-day instrument, pushing its yield 51 basis points higher.
At the long end, yields advanced 25 basis points, largely reflecting heavy profit-taking on the 330-day bill, where yields surged by 105 basis points.
Selling pressure also extended to the Central Bank of Nigeria’s OMO market, with the average yield rising 25 basis points to 21.3%.
The upward movement signals waning demand for short-term liquidity management instruments as investors sought to crystallize gains accumulated in recent sessions.
The Federal Government bond market mirrored the bearish tone, with the average secondary-market yield advancing 13 basis points to 16.8%.
Across the benchmark curve, yields rose in all major segments as investors reduced exposure to longer-duration securities.
The short end of the curve gained 7 basis points, while the mid-segment recorded the sharpest increase of 31 basis points, driven primarily by selling in the February 2028 bond, whose yield rose by 31 basis points.
At the long end, the average yield increased by 7 basis points amid pressure on the March 2050 bond, where yields climbed 33 basis points.
The steepest movement occurred in the mid-tenor segment, where the March 2036 bond saw its yield jump 76 basis points, highlighting investor caution toward duration risk and expectations for sustained elevated interest rates.
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