By theG&Journal
WED MAR 04 2026-theGBJournal|Treasury Bills (NTBs) and Federal Government of Nigeria (FGN) bond yields expanded on Wednesday as investors reacted to renewed supply dynamics and cautious positioning ahead of upcoming debt issuances.
The uptick reflects sustained pressure across the fixed income market, where participants continue to demand higher returns amid evolving liquidity conditions.
In the Treasury Bills segment, yields edged higher across key maturities as traders adjusted portfolios in response to primary market signals and system liquidity fluctuations. The upward movement suggests waning aggressive demand in the secondary market, with investors seeking improved stop rates before committing fresh funds.
The NTB average yield rose by 3bps to 17.3%. Across the curve, the average yield contracted at the short (-1bp) and mid (-1bp) segments, due to the demand for the 92DTM (-1bp) and 169DTM (-1bp) bills, respectively, but expanded at the long (+6bps) end, due to profit-taking activities on the 323DTM (+59bps) bill.
Meanwhile, the average yield contracted by 1bp to 21.0% in the OMO segment.
Similarly, FGN bond yields trended upward across the curve, indicating mild sell-offs in longer-dated instruments.
The rise in yields underscores cautious sentiment, particularly as market players weigh inflation expectations, fiscal borrowing needs, and monetary policy direction in their investment decisions.
The average yield expanded by 8bps to 15.5%. Across the benchmark curve, the average yield expanded at the short (+13bps) and mid (+17bps) segment, due to the sell pressures on the FEB-2031 (+46bps) and APR-2032 (+62bps) bond, but remained unchanged at the long end.
Overall, Wednesday’s expansion in yields points to a market recalibrating to supply realities and macroeconomic signals.
While demand for sovereign instruments remains structurally strong, pricing dynamics show investors are increasingly selective, pushing yields higher to compensate for perceived risks and liquidity shifts.
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