System Liquidity

Liquidity swung sharply during the week, peaking at ₦1.58 trillion after FAAC and NTB inflows. Despite midweek CBN settlements driving OPR/O/N rates above 32%, rates closed lower at 26.50% and 27.00%, respectively, amid strong system inflows.

Treasury Bills

T-bills traded cautiously amid subdued demand and wide bid-ask spreads. Interest picked up midweek following lower bond auction stop rates, especially for June 4 bills. NTB benchmark yields fell 57bps w/w, closing at 18.34%.

FGN Bonds

Bonds rallied midweek on strong auction demand and lower stop rates, particularly for 2029 and new 2032 papers. The May 2033s and Feb 2031s saw active trades. Despite a mixed close, average benchmark yields dropped 34bps w/w to 17.91%.

Eurobonds

Geopolitical risk and dovish Fed signals drove Eurobond volatility. Nigerian papers rallied midweek post-ceasefire and Powell’s comments but faced profit-taking later. Angola underperformed due to oil price worries. Nigerian Eurobond yields dropped 30bps w/w to 8.68%.

Nigerian Equities

The ASI gained 1.57% w/w to 119,995.76 points, driven by strength in agric and industrial stocks like PRESCO and BUACEMENT. Offshore and local interest buoyed tickers across sectors. Multiple stocks hit 52-week highs, sustaining bullish sentiment amid earnings optimism.

Foreign Exchange

The naira appreciated 52.5bps w/w to ₦1539.24/$, supported by $324m turnover late in the week. Despite no CBN intervention, improved FX liquidity from FPIs/exporters kept rates stable. Fixing hovered around ₦1549. Reserves fell $293.87m to $37.37bn.

Commodities

Oil rebounded slightly Friday but fell 12% w/w, its biggest drop since March 2023, amid OPEC+ output concerns. Brent settled at $67.77. Gold fell 2.8% w/w to $3,277.17/oz, as U.S.-China trade optimism hurt safe-haven demand.