System Liquidity

System liquidity opened the week in a strong surplus position of ₦6.16 trillion, largely driven by OMO maturities and continued placements at the CBN’s SLF window. This excess liquidity pushed funding costs slightly lower, with overnight and repo rates easing. Looking ahead, funding rates are expected to decline modestly as liquidity remains buoyant.

Treasury Bills

The NTB secondary market was largely stable with minimal yield movement across maturities. Investor activity stayed subdued despite improved liquidity, with only slight buying interest in mid-tenor bills. Overall yields edged down slightly, and trading is expected to continue in line with liquidity conditions.

FGN Bonds

The FGN bond market was relatively quiet with a mild bearish tone. Selling pressure was concentrated in mid-tenor bonds, pushing yields slightly higher, while the long end remained mostly unchanged due to weak demand. Overall yields edged up slightly and the market is expected to stay cautious in the near term.

Eurobonds

Nigerian sovereign Eurobonds traded mixed, reflecting cautious investor sentiment. Short-dated maturities saw mild buying interest and yield declines, while mid-to-long tenors experienced slight sell pressure, leaving the average benchmark yield marginally higher. Investors remained largely on the sidelines due to uncertain global signals, and mixed trading is expected to persist.

Nigerian Equities

The Nigerian equities market closed positive as the All-Share Index rose slightly, lifting year-to-date returns close to 30%. Gains were driven mainly by banking and consumer goods stocks, while the industrial index declined. Trading activity strengthened significantly due to large block trades, though market breadth remained negative.

Foreign Exchange

The Naira weakened slightly against the dollar due to renewed demand pressure, despite participation from foreign and local investors. External reserves declined marginally, and the currency is expected to remain relatively stable but with a negative bias in the near term.

Commodities

Oil prices were mixed amid geopolitical tensions around the Strait of Hormuz, with Brent flat and WTI rising. Gold showed mixed performance with futures rising slightly while spot prices dipped. Oil is expected to move with geopolitical developments, while gold is likely to trade with a mild downward bias.