THUR APRIL 09 2026-theGBJournal| Treasury bills yields declined on Wednesday following strong investor demand, even as the Debt Management Office (DMO) offered N700 billion across three maturities: N100.00 billion for the 91-Day tenor, N100.00 billion for the 182-Day tenor, and N500.00 billion for the 364-Day tenor.
The downward movement was observed across the curve, reflecting sustained appetite for short-term government securities in the face of evolving market liquidity conditions.
Across the curve, yields contracted marginally at the short and mid segments by 1 basis point each, while the long end recorded a sharper decline of 8 basis points.
The rally was largely driven by buying interest in the 79-day, 170-day, and 352-day instruments, with the longest tenor witnessing the most significant drop in yield (-46bps), indicating stronger demand for longer-dated bills.
In contrast, the Federal Government bond market recorded a bearish undertone, as average yields expanded by 8 basis points to settle at 15.6% percent.
The uptick was primarily driven by sell-offs at the short end of the curve, where profit-taking activities on the March 2027 bond pushed yields significantly higher.
Despite the pressure at the short end, the mid and long segments of the bond curve remained relatively stable, suggesting a cautious stance among investors amid mixed market signals.
The divergence between the T-bills and bond markets underscores shifting portfolio strategies as market participants navigate liquidity constraints and interest rate expectations.
Meanwhile, conditions in the money market tightened, with the overnight lending rate rising by 6 basis points to 22.3 percent.
The increase reflects significant funding pressure within the financial system, as demand for liquidity continues to outweigh supply, further shaping trading dynamics across fixed income markets.
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