June 22 (THEWILL) — Nigeria’s fixed-income market witnessed a significant surge in trading activity during the week ended June 19, 2026, as investors repositioned portfolios in response to rising yields and persistent inflationary pressures.
Data from the Financial Markets Dealers Association (FMDA) showed that Treasury bill (T-bill) turnover climbed by 137.49 percent week-on-week to ₦1.51 trillion. In comparison, trading volume in Federal Government of Nigeria (FGN) bonds increased by 75.91 percent to ₦1.20 trillion. Combined turnover across both segments reached approximately ₦2.71 trillion.
The sharp rise in market activity coincided with higher yields across most maturities, underscoring a broad repricing cycle in the domestic fixed income market. Investors continued to demand higher returns amid inflation concerns and tighter liquidity conditions, pushing yields higher despite declines in benchmark rates across major global markets.
Average FGN bond yields edged up by 2 basis points to 16.95 percent. The 7-year and 30-year bond tenors recorded the largest increases, rising by 24 basis points each, while the 5-year bond was the only maturity to post a decline, easing by 1 basis point to 17.39 percent.
The Treasury bill market recorded a more pronounced adjustment. Average T-bill yields rose by 72 basis points to 18.31 percent, with the 9-month bill jumping 154 basis points to 20.15 percent and the 6-month tenor gaining 98 basis points to 18.78 percent.
According to FMDA, weaker demand and investor preference for higher returns contributed to the rise in T-bill yields, following the Central Bank of Nigeria’s June 17 primary market auction, where ₦1.49 trillion was raised at higher stop rates.
The trend highlights continued divergence between Nigeria’s fixed-income market and global bond markets. While Nigeria’s benchmark 10-year bond yield rose 17 basis points to 17.61 percent, yields on comparable government securities in the United States, United Kingdom, South Africa, Kenya and Japan declined during the same period.
FMDA attributed the upward pressure on local yields to domestic inflation, which stood at 15.93 percent in May 2026, and ongoing liquidity constraints, factors that continue to shape investor sentiment and pricing in Nigeria’s fixed income market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
