By theG&BJournal
TUE FEB 24 2026-theGBJournal| Treasury yields edged lower on Monday, reflecting renewed demand in the fixed-income market, while Federal Government of Nigeria (FGN) bonds closed largely unchanged.
Market data showed modest declines across select tenors in the Treasury bills segment, suggesting bargain hunting and improved appetite for short-term government instruments
The treasury bills average yield contracted by 3bps to 17.4%.
Across the curve, the average yield contracted at the short (-2bps), mid (-2bps) and long (-5bps) segments due to the demand for the 45DTM (-3bps) ,178DTM (-3bps) and 332DTM (-30bps) bills, respectively.
Likewise, the average yield contracted by 23bps to 20.5% in the OMO segment.
In contrast, activity in the bond market was muted, with benchmark FGN bond yields holding flat as traders awaited clearer policy signals and supply guidance.
The market traded on a quiet note, as the average yield remained unchanged at 15.9%.
Across the benchmark curve, the average yield expanded at the mid (+1bp) segment, due to buying interest on the MAR-2035 (-1bp) bond but remained unchanged at the short and long ends.
The mixed sentiment underscored cautious positioning by investors navigating liquidity conditions and rate expectations.
Analysts say the divergence highlights a wait-and-see stance among institutional investors, who are balancing inflation trends, currency movements and expectations around monetary policy.
With auction calendars and liquidity flows in focus, market participants are closely monitoring signals that could drive the next directional shift in yields.
Meanwhile, the overnight lending rate contracted by 18bps to 22.7%, following inflows from coupon payments (N614.61 billion).
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