SAT JULY 11 2026-theGBJournal| Nigeria’s fixed-income market extended its bullish momentum as renewed offshore investor demand and improved banking system liquidity pushed Treasury bill and Federal Government bond yields lower, even as the overnight lending rate held steady.
The overnight (OVN) rate remained unchanged at 22.2%, despite a modest improvement in liquidity conditions.
System liquidity strengthened after inflows from N2.21 trillion in OMO maturities more than offset debits of N795.10 billion for the Nigerian Treasury Bills (NTB) Primary Market Auction (PMA), leaving the banking system in a net long position of N4.10 trillion.
The improved liquidity environment supported buying interest across the Treasury bills secondary market, where the average yield declined by 22 basis points to 19.7%.
The rally was broad-based, with the average yield on NTB instruments falling 14 basis points to 18.5%, reflecting renewed offshore participation in the market.
Similarly, the average yield in the OMO secondary market eased 18 basis points to 21.6% as investors reinvested proceeds from maturing OMO bills into available securities.
At Wednesday’s Treasury bills auction, the Debt Management Office (DMO) offered N700.00 billion across the 91-, 182- and 364-day maturities. Investor appetite remained robust, with total subscriptions climbing to N2.03 trillion, underscoring sustained demand for government securities.
The DMO eventually allotted N1.06 trillion, significantly above the initial offer size.
Stop rates on the 91-day and 364-day instruments increased by 2 basis points and 36 basis points to 16.30% and 17.70%, respectively, while the 182-day tenor was left unchanged at 16.50%.
The bullish sentiment also extended to the Federal Government bond secondary market, where renewed offshore demand drove the average yield 15 basis points lower to 17.6%.
Across the benchmark curve, yields compressed across all maturities, declining 7 basis points at the short end, 22 basis points at the mid-segment and 3 basis points at the long end.
The strongest buying interest was concentrated in the MAR-2027, FEB-2034 and MAR-2050 bonds, whose yields fell by 62 basis points, 34 basis points and 30 basis points, respectively, highlighting investors’ renewed appetite for sovereign debt amid improving liquidity conditions.
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