Prices of borrowing eased throughout Nigeria’s fixed-income market on Thursday, February 19, 2026, as yields on Treasury Payments, OMO payments, and FGN bonds declined amid strong investor demand.
Market knowledge obtained from totally different secondary market merchants confirmed broad-based yield compression throughout key tenors, signaling cheaper financing prices for the Federal Authorities.
The rally spanned brief, mid and long-term devices, reflecting renewed urge for food for naira-denominated property regardless of comparatively tight liquidity circumstances.
The event factors to sustained participation by home institutional traders, who proceed to dominate the market, driving the yield development by means of sturdy demand.
What the info is saying
Treasury Payments led the decline in yields as shopping for strain intensified throughout most maturities. The typical NTB yield fell 14 foundation factors to 17.3%, marking one of many strongest weekly rallies recorded in latest periods.
Throughout commonplace Treasury Invoice tenors:
- Yields on the 1-month paper declined by 12 foundation factors.
- The three-month tenor fell by 8 foundation factors, whereas the 12-month paper eased by 4 foundation factors.
- The 6-month tenor was the one exception, rising by 14 foundation factors.
- Demand was notably sturdy for the 77-day, 105-day and 273-day maturities, which noticed yield drops of 51 foundation factors, 50 foundation factors and 117 foundation factors, respectively.
General, the NTB common yield closed at 17.33%, underlining a broad discount in short-term financing prices and signalling traders’ continued consolation in deploying liquidity into risk-free authorities devices.
The bullish development was not restricted to the secondary market, as decrease cease charges had been additionally noticed on the Central Bank of Nigeria’s NTB public sale earlier within the week, reflecting improved sentiment amongst native institutional traders.
Extra insights
The easing in borrowing prices prolonged to different segments of the fixed-income market, reinforcing the broader rally.
Common yields on OMO payments contracted by 6 foundation factors to twenty.8%, suggesting continued demand for high-yielding central bank devices whilst liquidity administration operations stay lively.
Within the FGN bond market
- Common yields declined by 3 foundation factors to fifteen.9%, supported by shopping for curiosity on the brief and mid segments of the curve.
- The APR-2029 bond recorded a 5 foundation level drop in yield.
- The APR-2032 bond noticed a sharper 47 foundation level compression, reflecting sturdy urge for food for medium-term sovereign debt.
- By Thursday’s shut, common FGN bond yields eased additional to 16.03%, highlighting sustained native investor participation.
- Whereas financing prices trended downward throughout most maturities, longer-duration property remained comparatively flat.
In distinction, Nigeria’s Eurobond market moved in the other way. Common yields on dollar-denominated sovereign debt edged up by 1 foundation level to six.90%, indicating barely weaker offshore sentiment, presumably influenced by international threat circumstances and exterior price expectations.
What it’s best to know
The broad rally throughout NTBs, OMO payments and FGN bonds alerts renewed investor confidence in Naira-denominated property and has pushed home borrowing prices decrease. The development additionally comes amid expectations that financial circumstances might resume easing as inflation moderates, probably paving the way in which for a coverage price adjustment by the CBN.
- At the newest NTB public sale, the CBN raised N1.91 trillion at decrease charges.
- Cease charges, notably for the 364-day invoice, got here in considerably decrease than earlier ranges.
- Sturdy investor demand offered the apex bank room to scale back its supply charges.
- Regardless of the bond rally, short-term funding charges ticked greater on marginal liquidity tightening.
- The in a single day lending price rose 4 foundation factors to 22.9%, whereas the in a single day Nigerian Interbank Supplied Price climbed 7 foundation factors to 22.84%.
- The three-month NIBOR elevated by 8 foundation factors, even because the 6-month price fell by 3 foundation factors and the 1-month tenor remained unchanged.
- The Open Repo price held regular at 22.50%.
General, home gamers drove important yield compression throughout a number of tenors, making a supportive surroundings for presidency financing as borrowing prices proceed to development downward on the again of sturdy market demand.
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