System Liquidity

System liquidity opened the week in a narrower surplus as funding conditions eased, with average rates declining on the back of continued SDF participation. Liquidity is expected to improve further following the upcoming NGOMOB maturity.

Treasury Bills

The Treasury bills market opened with a mixed-to-bearish tone as investors repositioned ahead of the FGN Bond auction and inflation data. Selective demand was offset by sell-offs across other maturities.

FGN Bonds

The FGN bond market was subdued as investors focused on the bond auction. Strong auction demand and softer inflation supported bullish sentiment, with improved demand expected across the curve.

Eurobonds

The Eurobond market traded cautiously as elevated U.S. Treasury yields and geopolitical risks weighed on sentiment. Softer domestic inflation provided some support, although selling across select maturities limited gains.

Nigerian Equities

The equities market opened lower as profit-taking continued following the strong rally in recent months. Selling pressure was concentrated in Insurance and Banking, while selective buying supported Consumer Goods and Oil & Gas.

Foreign Exchange

The naira strengthened across major FX segments, supported by improving FX liquidity. However, persistent dollar demand and the gap between official and parallel markets could limit further gains.

Commodities

Commodity prices traded mixed as investors weighed inflation expectations, central-bank demand and geopolitical risks. Gold remained supported by safe-haven demand, while oil faced continued supply concerns from Middle East tensions.