A sharp liquidity squeeze and aggressive bond repricing erased trillions from Nigeria’s fixed-income market, triggering one of December’s steepest downturns.
FMDQ’s market capitalisation fell by N2.53 trillion in just two sessions, sliding from N89.52 trillion on December 8 to N86.99 trillion on December 9. The drop was driven by a broad collapse in bond prices, with yields jumping sharply across almost all benchmark FGN bonds.
Analysts say the selloff was triggered by a failed primary market issuance that diverted heavy liquidity into the secondary market, alongside intense year-end cash pressures that pushed investors to offload securities. Mid- and long-dated bonds recorded the steepest repricing, accounting for most of the lost value.
In the T-bills segment, short OMO bills held stable while longer NT-bills repriced as investors shifted toward liquid, defensive positions. Money-market conditions stayed tight, with the OPR at 22.50% and overnight rates rising.
Short-term fixings presented mixed funding conditions. Analysts expect yields to stabilise once liquidity normalises later in the week, calling the turbulence a typical end-of-year adjustment.
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