TUE JULY 28 2026-theGBJournal| A broad rally across Nigeria’s fixed-income market was seen on Monday as investors intensified demand for Treasury bills and Federal Government bonds (FGN Bonds), pushing secondary market yields lower even as liquidity conditions in the banking system tightened modestly.
The overnight lending rate rose 13 basis points to 22.3%, signalling slightly tighter liquidity in the interbank market.
However, the funding squeeze did little to dampen appetite for sovereign securities, underscoring investors’ continued preference for locking in attractive yields amid expectations that interest rates may be nearing a cyclical peak.
Treasury bills led the gains, with the average secondary market yield declining 10 basis points to 18.2% as buying interest remained broad-based across the yield curve.
Short-dated securities recorded a six-basis-point decline in average yields, while the mid-tenor segment also eased by six basis points.
The strongest rally occurred at the long end, where yields fell 14 basis points, supported by aggressive demand for the 80-day, 115-day and 283-day maturities, whose yields compressed by 16, 27 and 40 basis points respectively.
The bullish momentum extended to the Central Bank of Nigeria’s Open Market Operation (OMO) bills, where the average yield declined five basis points to 21.3%, reflecting sustained institutional demand for high-yielding short-term instruments.
Federal Government bonds also attracted strong buying interest, with the average secondary market yield falling 11 basis points to 17.1%.
The rally was most pronounced in the medium-tenor segment, where yields declined 26 basis points, led by the April 2032 benchmark bond, whose yield dropped 43 basis points.
Demand also strengthened for the March 2027 and April 2037 issues, which recorded yield declines of four and 24 basis points respectively.
The broad-based demand suggests institutional investors are deploying cash into fixed-income assets ahead of future primary market auctions, while also positioning for the possibility that the Central Bank of Nigeria could maintain a less hawkish stance if inflation continues to moderate.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
