WED JULY 01 2026-theGBJournal| Nigeria’s sovereign Eurobonds advanced as renewed investor demand swept across the curve, helping push average yields lower even as trading in the domestic Treasury bill market remained under pressure.
Improved appetite for hard-currency debt contrasted with a bearish outing in short-term local securities, while liquidity conditions in the banking system stayed comfortable following sizeable inflows from Open Market Operation (OMO) maturities.
Money market conditions remained broadly stable, with the overnight lending rate easing by two basis points to 22.2% after the financial system received NGN2.31 trillion in OMO maturity inflows, reducing funding pressures across the banking sector.
The Nigerian Overnight Financing Rate (NOFR) and Open Repo (OPR) rate were unchanged at 22.0%, reflecting balanced liquidity despite active trading.
The Treasury bill secondary market closed weaker, with the average yield climbing seven basis points to 18.7% as investors trimmed holdings across maturities.
Selling pressure was evident along the entire curve, with yields at the short end rising seven basis points, the mid-tenor advancing 11 basis points and the long end adding four basis points.
The move was driven primarily by sell-offs in the 65-day, 142-day and 310-day Treasury bills, whose yields rose by 31, 54 and 42 basis points, respectively.
The OMO bills segment also came under pressure, with the average yield increasing 13 basis points to 21.7%.
In contrast, the Federal Government of Nigeria (FGN) bond market posted modest gains as investors accumulated selected benchmark securities.
Average secondary-market yields declined four basis points to 17.3%.
Demand was strongest at the short and long ends of the curve, where yields fell eight and five basis points, respectively.
The FEB-2031 bond led gains after its yield declined 19 basis points, while the JUN-2053 issue recorded a 15-basis-point drop amid sustained buying interest.
The mid-segment was broadly mixed, however, with the average yield edging one basis point higher as investors booked profits on the JUN-2033 bond, pushing its yield up six basis points.
Nigeria’s Eurobond market also extended its recent recovery, supported by broad-based buying interest across the sovereign curve.
Although the rally was modest, it was sufficient to lower the average yield to 7.04% from 7.07% in the previous session, signalling improving investor sentiment toward the country’s dollar-denominated debt despite persistent global market uncertainties.
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