Treasury Bills Drive N1tn Fixed-Income Surge

By Babatunji Wusu| Nigeria’s fixed-income market recorded a landmark trading session as total single-day turnover exceeded N1 trillion, highlighting strong investor appetite for government debt instruments and rising market liquidity.

Data from the Central Bank of Nigeria (CBN) Fixed Income Dashboard showed that total market activity reached N1.06 trillion across 551 completed transactions on June 4, 2026. The impressive performance was largely driven by intense demand for Nigerian Treasury Bills, which accounted for the biggest share of trading activity.

According to the CBN, Treasury Bills generated 340 trades with a combined volume of N668.01 billion, making them the dominant asset class in the market. Investor interest was particularly concentrated in one-year instruments maturing in June 2027, with some transactions attracting yields close to 20 per cent.

The fixed-income market surge also received support from the Central Bank’s Open Market Operations (OMO) Bills, which attracted N224.41 billion across 43 trades. Institutional investors showed strong interest in short-term securities, with some ultra-short OMO instruments delivering yields of up to 22 per cent.

Meanwhile, activity in the Federal Government of Nigeria (FGN) Bond market remained robust. The bond segment recorded 168 trades valued at N170.36 billion, supported by 19 participating institutions. The most actively traded instrument was the February 2031 FGN Bond, which generated more than N76 billion in trading volume.

Market data also revealed a preference for medium-term bonds over longer-dated securities. While some mid-term instruments attracted yields approaching 19 per cent, longer-term bonds recorded lower rates despite remaining attractive to investors seeking stability.

The fixed-income market surge reflects growing confidence in government-backed securities as investors continue to seek competitive returns in a high-yield environment. Analysts believe the strong demand for Treasury Bills, OMO Bills and FGN Bonds underscores the market’s resilience and the increasing role of fixed-income assets in portfolio strategies.