Average yields in Nigeria’s sovereign bonds rose in the latest trading week as subdued activity in the domestic fixed-income market and a broader global bond selloff pushed returns higher.
Data released by the Financial Markets Dealers Association (FMDA) on Monday, March 9, 2026, showed the average yield on Federal Government of Nigeria (FGN) bonds increased to 16.13% last week from 15.46% two weeks earlier.
According to the professional body of dealing members from commercial banks and other authorized financial institutions, the increase reflects weak trading volumes in the local bond market triggered by rising global tensions.
What the data is saying
The latest figures highlight notable movements across Nigeria’s sovereign bond yield curve as investors adjusted their positions across different maturities.
- The 1-year FGN bond yield climbed sharply to 19.76% from 16.00%, representing the largest increase across the curve.
- The 5-year bond yield rose to 16.02% from 15.78%, while the 7-year yield increased to 15.86% from 15.59%.
- In contrast, the 3-year bond yield declined slightly to 15.61% from 15.74%, while the 30-year bond yield edged lower to 14.16% from 14.28%.
- The benchmark 10-year bond yield remained unchanged at 15.38%.
The mixed movement across maturities suggests investors are selectively adjusting their exposure, with stronger pressure observed at the short end of the yield curve.
More insights
Short-term government securities also reflected shifting sentiment in the money market, with Treasury bill yields rising across several tenors.
- The 12-month Treasury bill yield increased to 19.01% from 18.33%.
- The 9-month Treasury bill yield climbed to 18.26% from 18.17%.
- The 6-month Treasury bill yield rose to 17.20% from 17.08%.
- Overall, the average Treasury bill yield moved up to 17.40% from 17.25%.
However, yields on shorter tenors declined slightly as the 1-month and 3-month Treasury bills fell to 16.26% and 16.25%, respectively, from 16.31% and 16.34%.
The broader trend indicates investors are demanding higher compensation for locking funds into longer-duration instruments, reversing part of the earlier rally in Treasury bills following recent interest rate adjustments.
What you should know
The rise in Nigeria’s domestic bond yields also coincided with a broader selloff across global bond markets during the same period.
- The United States 10-year Treasury yield increased to 4.09% from 4.02%.
- The United Kingdom’s 10-year gilt yield rose to 4.50% from 4.30%.
- South Africa’s 10-year government bond yield jumped to 8.28% from 7.90%.
- Japan’s 10-year yield edged higher to 2.13%.
Other markets recorded relatively modest movements. China’s 10-year bond yield declined slightly to 1.78% from 1.82%, while Kenya’s 10-year yield remained broadly stable at about 11.50%.
The global uptick in yields reflects heightened investor caution amid geopolitical tensions and shifting expectations around monetary policy, trends that are also influencing capital flows and fixed-income market conditions in emerging economies.
