TUE OCT 27 2026-theGBJournal| The overnight lending rate increased by 45 basis points (bps) to 20.8% on Monday, despite the absence of significant funding pressures in the financial system.
This suggests a modest tightening in overnight funding conditions, although overall system liquidity remained relatively stable.
The Treasury bills secondary market remained quiet, with the average yield unchanged at 17.9%, reflecting limited repricing and subdued trading activity.
In contrast, the Open Market Operations (OMO) segment recorded a 10bps decline in the average yield to 18.6%, indicating mild buying interest in OMO bills and a slight improvement in demand for these instruments.
The Federal Government of Nigeria (FGN) bond market also traded quietly but maintained a bearish bias, as the average yield edged up by 1bp to 16.2%.
Across the yield curve, yields at the long end increased by 1bp, driven by selling pressure on the June 2053 bond, whose yield rose by 5bps.
Meanwhile, yields at the short and mid segments remained unchanged, indicating relative stability across these maturities.
Overall, fixed-income market performance was mixed, with OMO yields declining while Treasury bill yields remained stable and FGN bond yields edged higher.
Investors will likely continue to monitor liquidity conditions and demand across market segments for directional cues.
X-@theGBJournal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
