System Liquidity

System liquidity declined by 38.0% to ₦4.04 trillion from ₦6.52 trillion, driven by a ₦211.62 billion OMO auction settlement outflow and a ₦640.64 billion reduction in SDF placements. Despite the lower liquidity, the Overnight Rate (OVN) eased by 6bps to 22.13%, while NOFR and OPR remained unchanged at 22.00%, indicating adequate liquidity among lending banks.

Treasury Bills

The NTB market traded cautiously, with the average treasury bill yield rising marginally by 1bp to 16.66% from 16.65%. At the primary auction, demand remained exceptionally strong with ₦3.62 trillion in subscriptions against an offer of ₦700 billion, while the DMO allotted ₦1.25 trillion, exceeding the initial offer by ₦547 billion.

FGN Bonds

The FGN bond market was largely subdued as the average benchmark yield remained unchanged at 17.16%. The Mar-2027 bond yield fell 24bps to 18.39% due to its pull-to-par effect and demand for short tenors, while the Jan-2035 bond yield rose 7bps to 17.53%, leaving the overall market average unchanged.

Eurobonds

The Nigerian Eurobond market traded bearish as investors positioned cautiously ahead of the U.S. Federal Reserve decision. The average benchmark yield increased by about 2bps to 6.96% from 6.94%, with the Sep-2028 bond yield rising 6bps to 5.87%, while the Mar-2029 and Nov-2027 bonds gained 3bps and 2bps, respectively.

Nigerian Equities

The equity market closed lower, with the NGX All-Share Index (ASI) declining 0.41% to 246,980.17 points and market capitalization falling 0.41% to ₦159.34 trillion. Market weakness was broad-based across Banking, Industrial Goods, Oil & Gas and Consumer Goods, while the Insurance sector gained 2.69%, outperforming the market.

Foreign Exchange

The Naira weakened slightly at the official market, with the NAFEM rate depreciating by 8bps (₦1.18) to ₦1,366.71/$, while the parallel market rate remained unchanged at ₦1,405.00/$. Nigeria’s external reserves also declined by $25.80 million to $51.94 billion, marking the third consecutive daily drop.

Commodities

Oil prices advanced sharply amid renewed Middle East tensions and declining U.S. crude inventories, with Brent crude rising 7.87% to about $90.71/bbl and WTI increasing 6.89% to around $84.60/bbl. Meanwhile, spot gold gained 1.08% to $4,071.99/oz, reflecting continued demand for safe-haven assets.