THUR JULY 30 2026-theGBJournal| Nigeria’s fixed-income market settled into a quieter trading pattern on Wednesday, with investors digesting the outcome of Treasury bill auction where the Debt Management Office (DMO) raised N1.25 trillion despite offering N700 billion, easing the intense demand that had dominated recent sessions.
Liquidity conditions remained broadly stable, with the overnight lending rate edging down by 6 basis points to 22.1%, reflecting the absence of significant funding pressures in the money market.
Trading in the Treasury bill secondary market was subdued, although the market retained a mildly bearish bias as investors booked profits following the auction.
The average yield rose 1 basis point to 18.2%, suggesting participants were reassessing positions after the DMO’s larger-than-expected allotment absorbed part of the strong liquidity that had fuelled the recent rally.
Across the curve, yields increased at the short and mid tenors, with the average yield rising 1 basis point at the short end following profit-taking on the 36-day bill, whose yield climbed 15 basis points.
Mid-tenor yields advanced 7 basis points, driven by selling in the 162-day bill, where yields rose 24 basis points.
Demand remained firm for longer-dated securities, however, pushing the average yield at the long end down 3 basis points, led by buying interest in the 351-day bill, whose yield declined 21 basis points.
Activity in the Open Market Operations (OMO) segment was muted, with the average yield holding steady at 21.3%, indicating investors largely maintained existing positions.
The Federal Government bond market also experienced light trading but extended its recent rally.
The average secondary-market yield slipped 1 basis point to 17.0%, supported by selective demand for shorter- and medium-dated maturities.
Buying interest in the March 2027 bond drove yields at the short end lower by 5 basis points, while demand for the June 2033 bond trimmed mid-curve yields by 1 basis point.
The long end bucked the trend, with the average yield rising 1 basis point as investors sold the June 2038 bond, lifting its yield by 7 basis points.
The calmer tone across both Treasury bills and bonds suggests investors are consolidating positions after Wednesday’s heavily oversubscribed auction, with attention now shifting to liquidity conditions and the outlook for domestic interest rates.
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