Nigeria’s debt market recorded a N720 billion decline within two days, driven by falling Treasury Bills yields and volatility in the Open Market Operations (OMO) segment.
Data from FMDQ Securities Exchange showed total market value dropped from N104.68 trillion on March 16 to N103.96 trillion by March 18, reflecting ongoing adjustments in the fixed income space.
The shift followed the latest Treasury Bills auction by the Central Bank of Nigeria, where yields declined across key tenors and allotments fell short of total subscriptions, signalling cautious liquidity management.
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While Treasury Bills rates eased slightly, the OMO segment saw mixed movements, with some maturities rising and others dropping sharply, indicating uneven demand among investors.
Despite the short-term volatility, the Federal Government bond market remained largely stable, with yields holding within a narrow range and showing steady investor confidence in longer-term instruments.
Analysts say the contraction is mainly due to valuation adjustments and maturing instruments rather than heavy selloffs, as investors continue to reposition portfolios in response to shifting interest rate expectations.
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