By theG&BJournal
FRI MAR 06 2026-theGBJournal| Yields in Nigeria’s fixed income market moved higher on Thursday as investors engaged in profit-taking across Treasury instruments, pushing rates upward in the secondary market.
The sell-off reflected cautious positioning by investors seeking to lock in gains following recent declines in yields.
Across the curve, Nigerian Treasury yields ticked up as market participants adjusted portfolios amid shifting liquidity conditions and expectations around upcoming government debt issuances.
The mild bearish sentiment resulted in weaker prices for government securities during the session.
The treasury bills average yield expanded by 6bps to 17.3%. Across the curve, the average yield contracted at the short (-1bp) end, due to the demand for the 91DTM (-4bps) bill, but expanded at the mid (+7bps) and long (+11bps) segments, due to profit-taking activities on the 182DTM (+53bps) and 259DTM (+62bps) bills. respectively. Conversely, the average yield contracted by 2bps to 21.0% in the OMO segment.
Elsewhere, the FGN bond secondary market traded on a bearish note, as the average yield expanded by 1bp to 15.5%. Across the benchmark curve, the average yield expanded at the short (+1bp) end, due to profit-taking activities in the FEB-2031 (-5bps) bond, but closed flat at the mid and long segments.
At the same time, liquidity pressures in the money market nudged funding costs higher, with the overnight lending rate rising by about 8 basis points.
The uptick signaled tighter liquidity among banks as system cash balances moderated. The overnight lending rate rose by 8bps to 22.3%.
Despite the rise in yields, demand for sovereign securities remains broadly supported by institutional investors, including banks and asset managers, who continue to view Nigerian government instruments issued by the Central Bank of Nigeria and the Debt Management Office (DMO) as relatively attractive in a high-interest-rate environment.
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