TUE SEPT 15 2026-theGBJournal| The banking system’s liquidity position improved in Monday’s session, settling at a net positive N2.56 trillion.
Despite the stronger liquidity position, overnight funding costs edged higher, with the Overnight (O/N) rate rising 16 basis points to 22.31%.
Meanwhile, the Nigerian Overnight Financing Rate (NOFR) and Open Repo Rate (OPR) remained unchanged at 22.00%, indicating relative stability in broader money-market pricing.
The Treasury bill secondary market traded on a bullish note, with the average yield declining by 5bps to 18.8%, supported by sustained demand across the curve.
Across the curve, yields contracted in the short (-3bps), mid (-9bps) and long (-5bps) segments.
Demand was particularly evident in the 80DTM (-3bps), 157DTM (-68bps) and 332DTM (-19bps) bills, respectively, pointing to stronger buying interest across selected maturities.
The bullish sentiment also extended to the OMO segment, where the average yield contracted by 14bps to 20.2%, reflecting increased demand for the available instruments.
In the FGN bond secondary market, trading was similarly bullish, although the movement in yields was more modest.
The average yield declined by 1bp to 16.3%.
Across the benchmark curve, yields contracted at the short (-2bps), mid (-2bps) and long (-1bp) segments.
Buying interest was concentrated around the FEB-2031 (-5bps), JAN-2035 (-10bps) and APR-2037 (-5bps) maturities, respectively.
The contrasting movement between the stronger banking-system liquidity position and the modest increase in overnight funding costs suggests that short-term money-market conditions remain relatively tight despite the substantial system liquidity surplus.
At the same time, the firm demand for Treasury bills and selected FGN bonds points to continued investor appetite for domestic fixed-income assets at prevailing yield levels.
Elsewhere, the Nigerian Eurobond market remained bearish, with persistent sell-offs across the curve pushing the average yield higher to 7.12% from 7.05% in the previous session.
The widening in Eurobond yields underscores the divergent performance between Nigeria’s domestic fixed-income market, which maintained a bullish tone, and its hard-currency debt market, where investors continued to demand higher yields amid sustained selling pressure.
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