WED OCT 21 2026-theGBJournal| Nigeria’s overnight lending rate declined by 14 basis points to 20.2% following inflows of ₦2.07 trillion from Open Market Operations (OMO) maturities, easing short-term funding costs in the money market.
In the Treasury bills secondary market, trading was subdued, with the average yield holding steady at 17.8%, as mixed investor demand kept movements across maturities limited.
Yields contracted by one basis point at both the short and mid-segments of the curve, supported by demand for the 93-day and 184-day Treasury bills, respectively.
However, yields at the long end rose by one basis point, reflecting selling pressure on the 338-day bill, whose yield climbed by 38 basis points.
The OMO bills market recorded a firmer performance, with the average yield declining by two basis points to 18.6%, indicating continued demand for the short-term instruments.
Government bonds face selling pressure
The Federal Government of Nigeria (FGN) bond secondary market moved in the opposite direction, with the average yield rising by two basis points to 16.3%, as selling pressure outweighed demand in parts of the market.
Across the benchmark yield curve, yields at the long end expanded by six basis points, driven by selling pressure on the March 2050 bond, whose yield increased by 44 basis points.
At the mid-segment, yields declined by two basis points, supported by demand for the February 2034 bond, which recorded a 12-basis-point contraction in yield.
Yields at the short end remained unchanged.
The decline in overnight lending rates suggests that the ₦2.07 trillion in OMO maturities provided additional liquidity to the banking system, easing immediate funding pressures.
In the Treasury bills market, the unchanged average yield indicates a broadly stable trading environment, although movements in individual maturities point to differing investor preferences.
The decline in OMO yields also suggests stronger demand for those instruments during the session.
By contrast, the increase in average FGN bond yields signals selling pressure in the bond market.
Overall, the session reflected improving liquidity conditions in the money market, stable Treasury bill yields and weaker sentiment in the government bond market.
Elsewhere, the Nigerian Eurobond performance weakened across the curve, as average yield increased by 6bps, settling at 7.48% compared to 7.42% at the previous session.
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