Nigeria’s fixed-income market ended Thursday, October 2, 2025, on a cautious note, with Treasury bill yields easing marginally across maturities while Federal Government bonds closed mixed amid tight money market liquidity, according to FMDQ data.
Treasury bills, OMO notes ease
Benchmark Nigerian Treasury bills (NTBs) and Open Market Operation (OMO) notes recorded mild declines, with average yields down by about 2 basis points.
The NTB due October 9, 2025, closed at 16.37% (-0.01), while the December 4, 2025, paper settled at 17.69% (-0.02). Longer-dated maturities—July 9, 2026, and September 3, 2026—eased to 18.34% and 18.49%, respectively.
OMO instruments mirrored the trend. The November 4, 2025, note fell sharply to 20.85% (-0.84), marking the steepest drop of the session, while the January 6, 2026, paper closed at 20.76% (-0.02).
Bonds trade mixed
Activity in the FGN bond market was uneven as investors repositioned along the curve.
Shorter tenors advanced, with the March 17, 2027, bond at 16.73% (+0.36) and the February 23, 2028, at 16.57% (+0.20). Mid-tenor bonds softened, led by the May 15, 2033, issue at 16.05% (-0.40). Further out, the February 21, 2034, bond gained modestly to 16.33% (+0.17), while the April 18, 2037, note slipped to 15.99% (-0.11). Ultra-long bonds, including the April 26, 2049, maturity, closed unchanged at 15.84%.
Money market conditions
Funding rates stayed elevated, with the Open Repo (OPR) flat at 24.50% and the Overnight (O/N) rate easing slightly to 24.88%.
The Nigerian Interbank Offered Rate (NIBOR), however, declined across the curve, with the Overnight, 1M, 3M, and 6M tenors down 11bps, 16bps, 31bps, and 38bps, respectively, supported by fresh liquidity inflows. The Nigerian Interbank Treasury Bills True Yield (NITTY) curve also fell, pushing the benchmark average yield down 3bps to 17.90%.
Futures steady
FGN bond futures were broadly stable. The 2-Year (18 SEP 25 BF02) closed at 106.67 (3M), 100.47 (6M), and 106.75 (12M). The 10-Year (18 SEP 25 BF10) gained across contracts, finishing at 114.85 (3M), 118.45 (6M), and 131.43 (12M).
Eurobonds extend gains
Nigeria’s Eurobond market remained bullish on the back of strong offshore demand. Average yields fell by 7bps to 7.88%, with notable buying in the FEB-2030 and FEB-2032 papers.
