Home Business Overnight lending rate rises to 22.2% as investors favour T-bills ahead of...

Overnight lending rate rises to 22.2% as investors favour T-bills ahead of ₦900 billion NTB auction, FGN Bonds sell off as yields rise

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FGN Bond auction
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WED OCT 07 2026-theGBJournal| Nigeria’s overnight lending rate rose 25 basis points to 22.2%, despite ₦2.17 trillion in inflows from OMO maturities, pointing to continued liquidity pressure in the money market.

The Treasury bill secondary market, however, traded on a bullish note, with the average yield contracting 1bp to 17.8%.

Across the curve, average yields contracted at both the short (-1bp) and mid (-1bp) segments, driven by demand for the 80DTM (-1bp) and 171DTM (-1bp) bills, respectively.

Average yield at the long end remained unchanged at 18.2%. Similarly, the average yield in the OMO segment contracted by 6bps to 18.7%.

The Debt Management Office (DMO) is scheduled to conduct an NTB primary market auction today, Wednesday, offering ₦900 billion across the three maturities: ₦100 billion for the 91-day tenor, ₦100 billion for the 182-day tenor and ₦700 billion for the 364-day tenor.

Elsewhere, the FGN bond secondary market traded on a bearish note, with the average yield expanding 7bps to 15.7%.

Across the benchmark curve, average yields expanded at the short (+10bps), mid (+1bp) and long (+7bps) segments, driven by selling pressure on the FEB-2031 (+25bps), FEB-2034 (+35bps) and SEP-2036 (+26bps) bonds.

The divergence highlights a cautious shift in fixed-income markets, with demand holding up for shorter-dated Treasury instruments while longer-dated government bonds face renewed selling pressure.

X-@theGBJournal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com

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