TUE AUG 11 2026-theGBJournal| Nigeria’s money-market rates were broadly stable on Monday, while local fixed-income assets extended gains as investors positioned ahead of the release of July inflation data.
The overnight lending rate was unchanged at 22.1%, reflecting relatively balanced liquidity conditions in the banking system.
The stability came as investors remained cautious ahead of the consumer-price data, which could offer fresh clues on the direction of monetary policy and market liquidity in the coming weeks.
In the Treasury-bill market, yields continued to decline, extending the bullish momentum from last week.
Average yields fell three basis points to 18.1%, with demand concentrated across the curve.
Yields declined by two basis points at the short end, four basis points in the belly and two basis points at the long end.
Buying interest was strongest in the 87-day, 178-day and 192-day bills, where yields fell by two, 24 and 19 basis points, respectively.
The rally also extended to Open Market Operations securities, with average OMO yields declining four basis points to 21.4%, as investors continued to favour higher-yielding short-term instruments amid expectations for relatively stable liquidity conditions.
The sovereign bond market likewise remained firmly bid.
Average yields on Federal Government bonds fell two basis points to 16.6%, supported by demand for selected benchmark maturities.
At the short end, average yields declined four basis points, while mid-curve yields fell one basis point.
The February 2031 and June 2033 bonds led the advance, with yields declining nine and four basis points, respectively. The long end was unchanged.
Nigeria’s dollar-denominated Eurobonds also extended their positive run, with average yields compressing seven basis points week-on-week to 6.88%, supported by continued offshore buying interest.
The rally was led by the November 2027 and January 2031 sovereign notes, whose yields declined 14 and 12 basis points, respectively.
The February 2030 issue also strengthened, with its yield falling 10 basis points.
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