Nigeria’s fixed-income market strengthened on February 5, 2026, as Treasury payments and Federal Authorities bond yields declined throughout key maturities, lifting the entire measurement of the FMDQ debt market to N99.30 trillion.
Knowledge from the FMDQ Securities Trade confirmed that improved system liquidity and lowered reliance on aggressive short-term issuance supported yield compression, pointing to softer borrowing prices regardless of the Central Bank of Nigeria’s (CBN) tight financial coverage stance.
Market exercise mirrored sustained investor demand for presidency securities, with individuals more and more positioning alongside the short-, mid- and long-tenors of the yield curve as liquidity inflows from maturing devices outweighed the affect of financial tightening.
What the information is saying
FMDQ knowledge point out broad-based yield decline throughout each Treasury payments and sovereign bonds, with essentially the most pronounced declines seen on the longer finish of the NTB curve and the stomach of the bond curve.
The sample suggests rising investor consolation in extending period amid expectations of near-term stability in funding situations.
- Treasury payments maturing between October and December 2026 recorded a number of the sharpest yield declines through the session.
- FGN bonds with maturities between 2027 and 2035 closed decrease, reflecting stronger demand within the short- to mid-tenor section of the curve.
- Extremely-long-dated bonds past 2040 had been largely unchanged, pointing to lingering warning round long-term inflation and financial dangers.
- Total market turnover confirmed a sustained urge for food for presidency securities regardless of elevated coverage charges.
Taken collectively, the information level to enhancing liquidity situations and resilient demand, whilst buyers stay selective about long-dated exposures.
Perception on yields declines
Benchmark yields throughout Treasury payments and bonds closed decrease throughout most tenors, reinforcing the bullish tone within the mounted earnings market.
Quick- and mid-dated devices attracted the strongest bids, in step with buyers’ desire for decrease period danger.
Benchmark Treasury Payments (NTBs):
- Mar–Jun 2026: 15.55% – 16.65%
- Jul–Sep 2026: 16.29% – 16.74%
- Oct–Dec 2026: 16.05% – 16.20%
- Jan 2027: 16.05%
Benchmark FGN Bonds:
- Quick-term (2027–2029): about 16.04% – 16.11%
- Mid-term (2031–2036): about 16.25% – 16.88%
- Lengthy-term (2037–2053): about 14.93% – 16.91%
The distribution of yields highlights a flatter curve within the stomach, as buyers proceed to favour maturities that steadiness return and liquidity.
Extra insights from the market
Cash market indicators supported the bullish mounted earnings sentiment through the session.
Easing interbank charges signalled improved liquidity situations throughout the banking system.
- The in a single day (O/N) fee moderated to 22.80%, whereas the Open Repo Charge (OPR) closed at 22.50%.
- The easing aligns with liquidity inflows from maturing Central Bank of Nigeria Open Market Operations payments and different major market devices.
- FGN bond futures costs remained agency throughout the 2-year and 10-year contracts, signalling expectations of near-term yield stability.
- Market individuals continued to rebalance portfolios towards authorities securities amid restricted various yield alternatives.
Authorities securities stay central to asset allocation methods for banks, pension funds and asset managers.
What you need to know
Present yield ranges mark a transparent moderation from the elevated charges recorded in late 2025 and January 2026, when liquidity situations had been tighter and public sale cease charges extra unstable.
The most recent market actions underline demand-driven yield compression moderately than a shift within the Central Bank of Nigeria’s financial coverage stance.
- NTB and bond yield compression mirror stronger investor demand supported by easing liquidity.
- Coverage charges stay elevated, anchoring yields at comparatively excessive ranges by historic requirements.
- Traders are more and more favouring short- to mid-dated devices for a steadiness between yield and danger.
- Warning persists on the lengthy finish of the curve resulting from inflation and financial sustainability considerations.
Total, the information counsel a hard and fast earnings market adjusting to improved liquidity situations after the Central Bank of Nigeria (CBN) injected over N1.7 trillion into the monetary system by way of a sequence of repayments in early February.
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