Nigerian Treasury bills and bond yields dropped across maturities at the close of trading on the FMDQ Securities Exchange on Monday, October 20, 2025. The decline reflected sustained demand for short-term government instruments amid tight system liquidity.
Market data showed that average Treasury bill yields fell by about three basis points across all maturities. The 6-November 2025 bill closed at 16.60%, down from 16.63%, while the 4-December 2025 paper eased to 17.54% from 17.57%. The 5-February 2026 and 9-July 2026 bills recorded slight dips to 16.88% and 17.71% respectively. The 8-October 2026 paper closed lower at 17.82%.
Analysts linked the moderation in yields to renewed investor appetite for risk-free instruments and expectations that the Central Bank of Nigeria (CBN) will maintain its policy stance as inflation slows.
In the Open Market Operation (OMO) segment, yields also fell across most maturities. The 4-November 2025 OMO bill closed at 20.63%, while the 2-December 2025 and 6-January 2026 instruments settled at 23.53% and 21.79% respectively. Longer-dated OMO papers, including the 14-April 2026 and 7-July 2026 bills, closed at 20.55% and 19.28%.
Federal Government bonds traded mixed, with yields largely unchanged. The 17-March 2027 bond held steady at 16.02%, while the 20-March 2027 note slipped to 15.89%. The 15-May 2033 bond fell to 15.98%, while mid-curve instruments such as the 23-February 2028 and 20-March 2028 bonds rose slightly to 16.20% and 16.19%. Longer-tenor bonds, including the 27-March 2050 and 21-June 2038 issues, remained stable at 15.46% and 15.65%.
Money market rates also moderated slightly. The Open Repo (OPR) rate declined to 24.50%, and the Overnight (O/N) rate eased to 24.86%. Traders attributed this to marginal inflows from coupon payments, which briefly improved liquidity.
Market participants expect short-term yields to continue moderating as investors balance liquidity management and expectations of fresh issuances from the Debt Management Office (DMO).
