WED JULY 15 2026-theGBJournal| Nigeria’s fixed-income market traded bullish on Tuesday as investor demand for Treasury bills compressed yields across the curve, while the overnight interbank lending rate rose modestly amid a lack of fresh liquidity injections into the banking system.
The overnight (OVN) lending rate climbed 9 basis points to 22.2%, reflecting slightly tighter money market conditions as the financial system received no significant liquidity inflows to ease funding pressures.
In the Treasury bills secondary market, investors continued to favour government securities, pushing the average yield down by 6 basis points to 18.4%.
The rally was broad-based, with buying interest concentrated in selected maturities across the yield curve.
Yields declined by 4 basis points at the short end, 15 basis points at the mid-tenor and 2 basis points at the long end, supported by strong demand for the 51-day, 149-day and 233-day Treasury bills, whose yields fell 29 basis points, 65 basis points and 19 basis points, respectively.
Meanwhile, the Open Market Operations (OMO) segment was largely inactive, with the average yield holding steady at 21.5%, indicating limited trading interest and stable pricing in CBN-issued instruments.
The Federal Government bond (FGN BOND) market was comparatively subdued but retained a mildly bullish bias.
Average secondary-market yields eased 1 basis point to 17.4%, supported by selective demand at the shorter end of the curve.
The decline was driven primarily by buying interest in the March 2027 sovereign bond, whose yield dropped 57 basis points, pulling the short-end average yield lower by 12 basis points.
However, profit-taking in longer-dated securities tempered the overall rally, with the March 2050 bond yield rising 26 basis points, lifting the long-end average by 6 basis points.
Yields across the medium-tenor segment were broadly unchanged.
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