WED OCT 14 2026-theGBJournal| Nigeria’s fixed-income market delivered a mixed performance yesterday, as demand for Treasury bills drove marginal yield declines, while selling pressure pushed Federal Government of Nigeria (FGN) bond yields higher.
Meanwhile, the overnight lending rate rose despite ₦2.41 trillion in Open Market Operations (OMO) maturities flowing into the banking system.
The lending rate expanded by 9 basis points (bps) to 22.2%, indicating tighter funding conditions despite the substantial liquidity injection.
In the Treasury bills secondary market, trading remained bullish, with the average yield declining by 1bp to 17.9%.
Yields contracted across the short-, mid- and long-dated segments by 1bp each, supported by demand for the 93-day-to-maturity (DTM) bill, which saw its yield decline by 8bps, alongside the 163DTM and 359DTM bills, whose yields fell by 1bp and 5bps, respectively.
However, sentiment weakened in the OMO segment, where the average yield expanded by 3bps to 18.6%, reflecting a divergence in investor positioning across short-term government securities.
The FGN bond secondary market also came under pressure, with the average yield rising by 2bps to 15.9% as investors sold off selected instruments.
Yields increased across the short-, mid- and long-term segments by 2bps, 1bp and 4bps, respectively.
Selling pressure was most pronounced at the longer end of the curve, with the June 2036 bond yield climbing by 20bps, followed by the February 2034 bond, which rose by 16bps.
At the short end, the March 2027 bond yield increased by 7bps.
The session underscored a divergence in market sentiment, as investors favoured Treasury bills while demanding higher yields on OMO bills and FGN bonds.
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