Micah Jonah
March 16, 2026
Nigeria’s fixed-income market faced a challenging week, as bearish sentiment, cautious investor activity dominated both primary and secondary segments. Domestic liquidity fluctuations and global pressures added to market uncertainty.
Analysts at Meristem Securities noted that investors remained selective, adjusting portfolios due to inflation concerns and shifting yield expectations, prompting sell-offs across both bonds and Treasury bills.
During the week, the Central Bank of Nigeria (CBN) conducted an Open Market Operation auction, offering N600 billion across 8-day, 99-day, and 113-day maturities. While subscriptions rose 7.75 per cent to N767 billion, total allotments were only N81 billion, yielding a bid-to-cover ratio of 0.14x. Stop rates cleared at 19.35 per cent and 19.69 per cent for the 99-day and 113-day bills, while the 8-day instrument recorded no sales.
In Treasury Bills, the CBN offered N850 billion, down from N1.05 trillion previously. Investor demand focused on the long end, with the 364-day bill attracting N2.57 trillion in subscriptions. Total allotment was N933.92 billion, with the subscription-to-offer ratio rising to 3.27x. Stop rates for the 91-day and 182-day bills held steady at 15.95 per cent and 16.65 per cent, while the 364-day rate eased slightly to 16.72 per cent.
Secondary market activity remained negative as investors sold older holdings to reposition into higher-yielding securities, pushing yields higher. The average T-Bill yield rose 20 basis points to 17.66 per cent. The FGN bond market mirrored the bearish trend, with average yields rising one basis point to 15.76 per cent, mainly affecting APR-29 and JUN-53 bonds. Mid-curve bonds attracted some buying, partially mitigating losses.
Internationally, Nigeria’s Eurobond market closed in the red, with yields up eight basis points to 7.25 per cent. Analysts attributed this to stronger-than-expected US inflation and a rising US dollar, triggering global “risk-off” sentiment and sell-offs across Eurobond maturities.
The mixed auction results and yield pressures underscore the challenges facing Nigerian fixed-income markets, highlighting the need for investors to carefully manage risk amid domestic and global uncertainties.
