THUR JULY 02 2026-theGBJournal| Nigeria’s Treasury bill market extended its rally, driving secondary-market yields lower as investors intensified demand for short- and long-dated securities despite persistent liquidity tightness in the banking system.
The move contrasted with renewed selling pressure in the Federal Government bond market, where yields climbed across most maturities as investors trimmed duration exposure.
Overnight funding conditions remained tight, with the interbank lending rate edging up by 3 basis points to 22.2% as the financial system received no significant liquidity injections to ease cash shortages among lenders.
In the Treasury bill secondary market, bullish sentiment prevailed, pulling the average yield down by 5 basis points to 18.7%.
Buying interest was concentrated at both ends of the curve, reflecting investors’ preference for relatively shorter-tenor instruments while selectively locking in yields on longer-dated bills.
At the short end, the average yield declined by 13 basis points, driven primarily by strong demand for the 64-day-to-maturity bill, whose yield fell 30 basis points.
The long end also strengthened, with the average yield dropping 4 basis points following aggressive buying of the 309-day bill, which recorded a 21-basis-point decline in yield.
The middle segment, however, bucked the broader trend as investors sold the 162-day bill, pushing its yield up by 22 basis points and lifting the average mid-curve yield by 3 basis points.
In the Central Bank of Nigeria’s Open Market Operations (OMO) segment, trading was relatively subdued, with the average yield edging up by 1 basis point to 21.7%, suggesting investors maintained a cautious stance toward the apex bank’s liquidity management instruments.
Meanwhile, sentiment in the Federal Government bond market weakened as investors reduced holdings across key maturities. The average secondary-market bond yield rose by 10 basis points to 17.5%, reflecting broad-based selling pressure.
Performance across the benchmark curve was mixed. The short end outperformed, with the average yield falling 21 basis points after robust demand for the March 2027 bond drove its yield down by 110 basis points.
However, losses were more pronounced in the belly of the curve, where the average yield jumped 57 basis points as investors sold the July 2034 benchmark bond, sending its yield up by 107 basis points.
The long end also softened, with the average yield rising 1 basis point following selloffs in the June 2053 bond, whose yield increased by 24 basis points.
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