Treasury Bills, Bonds Mixed over Liquidity Shift

Trading activities in the fixed interest securities closed on a mixed sentiment in the secondary market amidst a shift in the money market liquidity, forcing traders to weigh investing options suitable for the moment.

While there was a pocket of transaction consummated in the secondary market for Nigerian Treasury bills, trading activities were relatively cold in the bonds space.

The short-term benchmark rate jerked up, though still ranging at single-digit low despite a high interest rate environment driven by monetary policy tightening of the apex bank.

Data from FMDQ showed that the overnight lending rate expanded by 110 basis points to 3.6% on Tuesday, in the absence of inflows into the financial system.

For Treasury bills, fixed interest securities investors and traders were bullish. Due to the buying momentum even with a tight funding level the average yield contracted by 3 basis points to 6.9%.

Across the curve, Cordros Capital said in a note that the average yield closed flat at the short and mid segments. However, yield declined at the long (-6bps) end as market participants demanded the 324-day to maturity (-69bps) bill.

Elsewhere, the average yield was unchanged at 12.0% in the OMO segment. The FGN bond secondary market traded on a quiet note, as the average yield was flat at 14.4%.

Across the benchmark curve, analysts said the average yield inched higher at the short (+1bp) end following the sell-off of the JAN-2026 (+6bps) bond. Meanwhile, the average yield was flat at the mid and long segments.

In Nigeria’s sovereign Eurobonds market, activity level was dominantly in the bullish region as positive sentiments pervaded the movement in yields.

As a result, the average yield in the market inched lower by 65 basis points to close at 12.14% due to bullish buy interest, traders at Cowry Asset said in a market update yesterday. #Treasury Bills, Bonds Mixed over Liquidity Shift  Nigeria Eurobond Slumps after CBN Resumes OMO Auction