System Liquidity

System liquidity stayed in surplus despite a slight pullback, as funding costs eased on continued strong participation at the SDF window. Rates should stay anchored near current levels next session, supported by expected coupon inflows.

Treasury Bills

The NTB market traded mixed, with yields easing at the short and mid end on selective demand, while the long end saw some selling pressure. With no fresh auction supply, demand should stay concentrated on the shorter-dated bills

FGN Bonds

The bond market traded on a bullish note, with buying interest concentrated at the short-to-mid segment of the curve while the long end held flat. Trading should remain concentrated in the same tenors as demand persists there.

Eurobonds

The Eurobond curve turned mildly bearish, as elevated US Treasury yields and persistent Middle East risk pressured sentiment despite firm oil prices and Nigeria’s improving reserve position. Yields may stay pressured near-term, though the fiscal backdrop should limit the scale of any sell-off.

Nigerian Equities

The market closed bearish for an eighth straight session, led lower by Oil & Gas, Insurance, and Banking, while Consumer Goods bucked the trend and Industrial Goods closed flat. Despite the pullback, sentiment remains resilient given the strong year-to-date performance. Expect continued cautious, choppy trading as profit-taking persists, with selective support from names offering strong earnings and dividend visibility.

Foreign Exchange

The naira traded mixed, depreciating at the official window while appreciating in the parallel market, with the Pound and Euro also weaker at NAFEM. Stability should hold near-term on improving FX liquidity, though persistent demand and the official-parallel gap could limit further gains.

Commodities

Gold rose as the US Treasury’s expanded bond buybacks weakened the dollar and pulled longer-term yields lower, with safe-haven demand adding further support. Brent extended its climb to a fresh multi-week high after fresh US measures targeting Iran, though Gulf producers rerouting supply tempered some of the upside. Gold should stay supported by safe-haven flows and shifting yield expectations, while oil remains volatile on Hormuz-linked geopolitical risk.