By theG&BJournal
MON MAR 02 2026-theGBJournal| The Nigerian fixed-income market displayed a divergent trend during the latest trading session, as yields on Treasury bills (NTB) edged lower on Monday following sustained buying interest in the secondary market.
The treasury bills average yield fell by 2bps to 16.6%.
Across the curve, the average yield declined at the short (-2bps), mid (-2bps) and long (-3bps) segments, driven by demand for the 17DTM (-3bps), 143DTM (-3ps), and 339DTM (-3bps) bills, respectively.
Similarly, the average yield declined by 3bps to 21.2% in the OMO segment.
This bullish sentiment in the short-term debt space was largely driven by improved system liquidity, as investors sought to reinvest maturing funds into high-quality government securities.
Consequently, the average benchmark yield across various tenors witnessed a marginal decline, reflecting a slight shift in market dynamics.
In contrast, the Federal Government of Nigeria (FGN) Bonds market experienced a relatively quiet session, characterized by a notable lull in transaction volumes, with the average yield unchanged at 15.4%.
Market participants appeared to take a cautious stance, with many adopting a “wait-and-see” approach ahead of upcoming primary market auctions and potential macroeconomic shifts.
Despite sporadic interests in select mid-to-long-dated instruments, the overall sentiment remained tepid, leaving the average yield across the bond curve largely unchanged from the previous close.
Market analysts attribute this period of relative stability in bond yields to a balance between supply and demand, as institutional investors maintain their current portfolios while monitoring inflationary pressures and central bank policy signals.
While the short end of the market continues to react to liquidity fluctuations, the long-term debt segment reflects a broader consolidation phase.
Looking ahead, traders expect the market to remain sensitive to fiscal updates and the Debt Management Office’s (DMO) issuance calendar for the coming month.
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