Yields on Nigeria’s sovereign bonds climbed in the latest trading week, reflecting subdued domestic trading activity and a broader selloff across global debt markets that pushed investors to demand higher returns.
Average yields on Federal Government of Nigeria (FGN) bonds rose to 16.13% last week from 15.46% two weeks earlier, according to data released by the Financial Markets Dealers Association (FMDA) on March 9, 2026.
The Lagos-based association, which represents dealing members from commercial banks and other authorized financial institutions, said the increase followed weaker trading volumes in the local fixed-income market as investors reacted to rising geopolitical tensions and shifting global market conditions.
Movements across Nigeria’s sovereign yield curve showed investors adjusting their positions selectively across maturities.
Short-term bonds recorded the sharpest increase. The one-year FGN bond yield surged to 19.76% from 16.00%, marking the largest rise across the curve. The five-year bond yield climbed to 16.02% from 15.78%, while the seven-year yield rose to 15.86% from 15.59%.
By contrast, some longer tenors recorded slight declines. The three-year bond yield edged lower to 15.61% from 15.74%, while the 30-year yield dipped to 14.16% from 14.28%. The benchmark 10-year FGN bond yield remained unchanged at 15.38%.
The mixed movement suggests investors are rotating exposure across different maturities rather than exiting the market entirely, with the strongest pressure concentrated at the short end of the curve.
Short-term government securities also reflected shifting sentiment in the money market.
Treasury bill yields increased across several tenors during the period. The 12-month Treasury bill yield rose to 19.01% from 18.33%, while the nine-month yield increased to 18.26% from 18.17%. The six-month bill yield also climbed to 17.20% from 17.08%.
Overall, the average Treasury bill yield moved higher to 17.40% from 17.25%.
Shorter tenors, however, recorded modest declines. The one-month Treasury bill yield slipped to 16.26% from 16.31%, while the three-month bill yield fell to 16.25% from 16.34%.
The trend indicates investors are demanding higher compensation for holding longer-duration instruments, reversing part of the earlier rally in Treasury bills following recent interest rate adjustments in the domestic market.
Analysts say the upward movement in Nigeria’s yields also reflects global fixed-income market pressures.
Government bond markets across several major economies recorded rising yields during the same period as investors reassessed monetary policy expectations and geopolitical risks.
In the United States, the yield on the 10-year Treasury note rose to 4.09% from 4.02%. The United Kingdom’s 10-year gilt yield climbed to 4.50% from 4.30%, while South Africa’s 10-year government bond yield increased to 8.28% from 7.90%.
Japan also recorded a modest increase, with the 10-year government bond yield edging higher to 2.13%.
Some markets moved in the opposite direction. China’s 10-year bond yield declined slightly to 1.78% from 1.82%, while Kenya’s 10-year government bond yield remained broadly stable at about 11.50%.
The global rise in yields reflects growing investor caution as geopolitical tensions and inflation risks continue to shape expectations for monetary policy in major economies.
Those developments are increasingly influencing capital flows into emerging and frontier markets, including Nigeria.
For Nigeria’s debt market, the recent movements suggest investors remain cautious despite relatively high returns offered by government securities.
Higher yields typically make Nigerian bonds more attractive to investors seeking income, but they also increase borrowing costs for the government at a time when fiscal pressures remain elevated.
Market participants say the direction of yields in the coming weeks will depend on global financial conditions, domestic liquidity levels and expectations around monetary policy from the Central Bank of Nigeria.