TUE NOV 03 2026-theGBJournal| Nigeria’s money market opened the week with a contraction in system liquidity, as the banking system settled at a net long position of ₦7.36 trillion.
Despite the tighter liquidity position, overnight funding costs eased, with the Overnight (O/N) rate declining 13 basis points (bps) to 20.25%.
The Open Repo Rate and Nigerian Overnight Financing Rate (NOFR) remained unchanged at 20.00%, indicating relative stability in benchmark funding costs.
In the fixed-income market, Treasury bills extended their bullish momentum, with the average secondary-market yield declining 2bps to 17.9%, supported by demand across the short and belly segments of the curve.
Short- and mid-tenor yields fell 3bps each, driven by buying interest in the 87-day-to-maturity (DTM) and 171-DTM bills, respectively. Yields at the long end remained unchanged, suggesting that demand was concentrated in shorter-dated instruments.
Similarly, the Open Market Operations (OMO) segment maintained a positive bias, with the average yield declining 3bps to 18.6%, reflecting sustained investor demand for OMO bills.
Activity in the Federal Government of Nigeria (FGN) bond secondary market was relatively subdued, although yields maintained a downward trajectory. The average bond yield declined 1bp to 16.2%.
Across the benchmark curve, yields at the long end contracted 2bps, supported by demand for the June 2038 bond, whose yield fell 9bps. Yields across the short and mid segments remained unchanged.
Overall, the fixed-income market began the week on a bullish footing, with demand concentrated in Treasury bills and long-dated government bonds, while easing overnight rates pointed to lower short-term funding costs despite the reported liquidity contraction.
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