THUR JUNE 04 2026-theGBJournal| Nigeria’s money market remained largely stable on Thursday, with the overnight lending rate easing by 2 basis points to 22.2% amid the absence of significant liquidity inflows into the banking system.
Activity in the Treasury bills secondary market was subdued but skewed toward buying interest, leading the average yield to decline by 1 basis point to 17.4%.
Across the curve, yields compressed marginally at the short, mid and long tenors as investors accumulated the 91-day, 182-day and 350-day instruments, respectively.
The bullish sentiment also extended to the Open Market Operations (OMO) segment, where the average yield fell by 1 basis point to 20.9%.
In contrast, the Treasury bond market came under selling pressure, reversing the modest gains recorded in the short-term debt market.
The average bond yield rose by 11 basis points to 15.9%, driven by broad-based weakness across the benchmark curve. Yields at the short end advanced by 25 basis points, largely reflecting heavy selloffs in the March 2027 bond, whose yield surged 112 basis points.
The mid-segment added 3 basis points following declines in the June 2033 issue, while the long end climbed 5 basis points as investors trimmed positions in the June 2038 bond, pushing its yield up by 38 basis points.
The divergence between Treasury bill and bond performance highlights investors’ preference for shorter-duration instruments amid lingering uncertainty over interest-rate direction and liquidity conditions, even as demand for select money-market securities continues to support yields at current levels.
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