System Liquidity: Liquidity fell to c. ₦3.96trn after a late OMO settlement, but the average funding cost eased 27bps to 20.33%. Banks placed c. ₦3.76trn at the SDF window. Liquidity should stay in surplus.

Treasury Bills: The DMO sold c. ₦968.47bn at the first NTB auction of Q4, above the ₦900bn offered, at stop rates of 15.50%, 15.80% and 15.85% for the 91-, 182- and 364-day bills. Demand was weaker, at c. ₦1.77trn against a c. ₦3.39trn average last quarter. The average yield rose 8bps to 17.85%. Interest should stay on the 1-year paper.

FGN Bonds: Selling continued, mostly in the middle of the curve. The average yield rose 11bps to 15.87%. Foreign investors were quiet and more bond supply is expected.

Foreign Exchange: The naira lost 0.07% to ₦1,331.77/$ at NAFEM and 0.37% to ₦1,365.00/$ in the parallel market. Reserves rose to c. $54.98bn. The FX market should stay stable.

Nigerian Equities: Profit-taking pulled the All-Share Index down 0.07% to 250,096.75 points, and 36 stocks fell against 26 gainers. The year-to-date return is 60.72%. Expect the market to move sideways until Q3 results come in.

Eurobonds: Yields rose as U.S. Treasuries sold off. The average yield rose 9bps to 7.71%. The U.S. 10-year yield hit 5.32%, its highest since 2002, on inflation worries.

Commodities: Gold fell 1.45% to $4,131.47/oz, while Brent rose 1.83% to $101.87/bbl on Middle East supply risks and a storm heading for U.S. oil-producing regions.