System Liquidity

Liquidity moderated on settlement outflows from the prior day’s auctions, though a bond coupon and steady SDF participation cushioned the decline. Funding costs should stay moderated, though fresh pressure looms as OMO settlement clears.

Treasury Bills

The NTB market traded bullish as investors chased yields lower following a stop rate decline at the recent auction. Buying interest should stay focused on the 1-year paper near term.

FGN Bonds

Bonds closed bullish on spillover demand from the NTB auction, led by the short end. Sustained demand is expected to continue across the space.

Eurobonds

Sentiment stayed cautious on elevated US yields ahead of the Jackson Hole address, though selective buying kept yields broadly stable. Pressure should persist near term, cushioned by Nigeria’s improving reserve position.

Nigerian Equities

The market closed marginally positive on gains in banking names, even as broader sentiment stayed mixed across sectors. Expect cautious, choppy trading as investors digest the FTSE Russell reclassification news.

Foreign Exchange

The naira firmed at NAFEM but faced renewed parallel market pressure, as reserves continued to build. Stability should persist near term on ongoing policy support.

Commodities

Gold held near recent highs on safe-haven demand ahead of Fed commentary, while Brent extended losses amid mixed Middle East supply signals. Expect gold to stay range-bound and oil to remain volatile.