System Liquidity

Following FAAC inflow of about ₦850 billion and reduction in DMBs use of CBN’s SLF window, system liquidity improved significantly to ₦1.35 trillion at the end of the week. OPR dipped 583 bps to 26.50%, while O/N declined by 575bps to 26.92%.

Treasury Bills

The NTB secondary market traded bullishly, buoyed by the MPC’s decision to maintain the MPR at 27.5% and strong investor demand at the DMO auction, which saw stop rates declined across all tenors, and combined with post-auction momentum and cautious optimism. Average yield dropped by 11bps w/w to 17.6%.

FGN Bonds

The FGN bond market traded mixed but skewed bullish, driven by improved liquidity and positioning ahead of the July bond auction. Strong demand for mid-to-long-dated papers led to yield compression, resulting in a 20bps w/w decline in the average yield to 16.11%.

Eurobonds

African Eurobonds traded positively, driven by trade agreement between U.S. and key trade partners like Japan and EU. Nigerian Eurobonds saw a modest 22 bps yield decrease, ending the week at 8.17%.

Nigerian Equities

The equities market rallied, with the All-Share Index up 2.18% to134,452.93 points on strong interest across major sectors. Block trades in ACCESSCORP, UBA and PRESCO lifted sentiment.

Foreign Exchange

The Naira traded within a bearishly despite CBN intervention of $81million. The Naira closed at an average of ₦1,534.72/$, down 16bps w/w. Reserves rose by $778.34 million to $38.63 billion.

Commodities

Oil prices dipped to a three-week low, weighed down by weak economic indicators from the U.S. and China. Brent settled at $68.04, WTI at $65.09. Gold shed on reduced safe-haven demand, dipped 0.4%w/w to $3,336.58.