By theG&BJournal
TUE MAR 10 2026-theGBJournal| Yields on Federal Government of Nigeria (FGN) bonds and Nigerian Treasury Bills (NTBs) climbed on Monday as investors engaged in profit-taking following recent gains across the fixed income market.
The sell-off in government securities pushed yields higher, reflecting cautious sentiment among market participants amid evolving liquidity conditions.
As a result, prices of FGN bonds and NTBs moderated, driving yields upward across key maturities as traders repositioned their portfolios.
While treasury bills average yield expanded by 2bps to 17.6%, the FGN Bond the average yield expanded by 9bps to 15.6%, as investors locked in profits after the sustained rally recorded in recent sessions.
Across the NTB curve, the average yield contracted at the short (-11bps) and mid (-2bps) segments, due to the demand for the 59DTM (-41bps) and 164DTM (-17bps) bills, respectively but expanded at the long (+11bps) end, due to profit-taking activities on the 318DTM (+117bps) bill. Conversely, the average yield contracted by 14bps to 21.2% in the OMO segment.
Similarly, across the FGN Bond benchmark curve, the average yield expanded at the short (+1bp), mid (+32bps) and long (+4bps) segments, due to profit-taking activities on the AUG-2030 (+30bps), JUL-2034 (+61bps) and MAR-2036 (+32bps) bonds, respectively.
Market analysts noted that the uptick in yields also reflects expectations of improved supply in the near term, prompting investors to adjust their holdings ahead of upcoming auctions.
The adjustment in pricing signals a temporary pause in the bullish momentum that had previously compressed yields.
Despite Monday’s increase, fixed-income securities remain attractive to investors seeking relatively safe returns in Nigeria’s high interest rate environment.
Analysts expect market direction in the coming days to be shaped by liquidity flows, investor demand, and the Federal Government’s borrowing strategy.
Meanwhile, the overnight lending rate expanded by 8bps to 22.3% in the absence of any significant funding pressure on the system.
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