TUE SEPT 22 2026-theGBJournal| Nigeria’s overnight lending rate remained unchanged at 22.2% on Monday, while buying interest strengthened across the fixed-income market, driving Treasury bill and Federal Government bond yields lower.
The Treasury bill secondary market traded on a bullish note, with the average yield declining by 3 basis points (bps) to 18.8%.
The decline was broad-based across the curve, with average yields falling by 3 bps at both the short and mid segments and by 4 bps at the long end.
The movement was driven by demand for selected maturities, particularly the 80-day-to-maturity (DTM), 178-DTM and 290-DTM bills, whose yields declined by 3 bps, 3 bps and 17 bps, respectively.
The sharper decline at the longer tenor reflected stronger buying interest in the 290-DTM bill.
Activity was similarly positive in the Open Market Operations (OMO) segment, where the average yield fell by 6 bps to 20.2%, pointing to sustained demand for short-term fixed-income instruments despite the elevated overnight funding rate.
The bullish tone extended to the FGN bond secondary market, where the average yield contracted by 13 bps to 16.2%.
The decline was concentrated at the short end of the sovereign yield curve, where average yields fell by 38 bps, driven largely by strong demand for the March 2027 FGN bond. Its yield fell sharply by 242 bps.
Yields at the mid and long segments of the curve were unchanged.
The session therefore reflected broad-based buying interest in Nigerian fixed-income securities, with the strongest movements recorded in selected Treasury bills and the short-dated sovereign bond space.
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