THUR JULY 23 2026-theGBJournal| Nigerian government securities extended their rally on Wednesday as investors increased demand for Treasury bills and Federal Government bonds, driving yields lower across most maturities despite tighter liquidity conditions in the banking system.
The overnight lending rate edged up 5 basis points to 22.2%, reflecting the absence of significant liquidity inflows into the financial system.
In the Treasury bill secondary market, trading was subdued but sentiment remained firmly bullish.
The average yield declined by 1 basis point to 18.3% as investors accumulated short- and long-dated securities.
Demand for the 78-day and 232-day bills compressed their yields by 22 basis points and 16 basis points, respectively.
The gains were partly offset by selling pressure on the 141-day bill, which pushed yields at the mid-tenor of the curve 2 basis points higher.
The bullish tone was more pronounced in the Central Bank of Nigeria’s Open Market Operations (OMO) segment, where the average yield fell by 7 basis points to 21.4%, signalling sustained investor appetite for high-yielding short-term government securities.
The Federal Government bond market also ended stronger, with the average secondary market yield declining 4 basis points to 17.3%.
Buying interest was concentrated across the curve, particularly in the April 2029, June 2033 and April 2049 benchmark bonds, whose yields fell by 25 basis points, 5 basis points and 5 basis points, respectively.
The broad decline in yields suggests investors continue to position for stable monetary conditions following the Central Bank of Nigeria’s decision to keep its benchmark interest rate unchanged, while locking in attractive returns across the sovereign debt market.
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