WED AUG 05 2026-theGBJournal| Abundant system liquidity continued to support Nigeria’s fixed-income market on Tuesday, with government bond yields extending their decline while Treasury bill yields remained broadly unchanged for a second consecutive session, signalling investors’ preference to maintain positions ahead of fresh supply.
The overnight lending rate eased marginally by 1 basis point to 22.1%, reflecting improved liquidity conditions after the inflow of ₦2.45 trillion from primary market repayments.
The liquidity boost helped sustain demand across fixed-income assets, although activity in the Treasury bill secondary market remained subdued, leaving the average yield unchanged at 18.2%. In the Open Market Operations (OMO) segment, the average yield edged lower by 1 basis point to 21.3%.
The strongest buying interest was concentrated in the Federal Government bond (FGN Bond) market, where the average secondary market yield fell by 5 basis points to 16.7%, extending the bullish tone seen in recent sessions.
Demand was concentrated in the short- and medium-dated maturities, pushing yields lower by 7 basis points and 11 basis points, respectively.
The rally was led by the AUG-2030 and APR-2032 bonds, whose yields compressed by 43 basis points and 26 basis points, while yields at the long end were largely unchanged.
The market’s resilience suggests investors are deploying excess liquidity into sovereign debt following the sizeable primary market repayments, with expectations that system liquidity will remain comfortable in the near term.
The G&B Journal’s analysts reckon that the flat Treasury bill yield for a second day indicates a market waiting for fresh pricing signals, while the stronger demand for longer-duration FGN bonds reflects expectations that yields may have peaked, encouraging investors to lock in attractive real returns before any further moderation in interest rates.
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