FIXED INCOME MARKETS
MONEY MARKETS
Opening system liquidity stayed short today. However, the Open Repo Rate (OPR) eased by 35 bps to 31.75%, while the Overnight Rate (O/N) decreased by 16 bps to 32.60%.
Outlook: We expect interbank rates to remain elevated tomorrow.
Treasury Bills
Today, the treasury bills market closed bearish due to the selling interests across the curve. The average mid-rate rose by 8 bps to 21.43%.
Outlook: We expect bearish bias to persist.
FGN Bonds
The local FGN bonds market was relatively calm, with a bearish undertone. The average mid-yield increased marginally by 1 bp to 19.05%.
Outlook: We expect market to stay bearish in the interim.
Equities
The Nigerian equity market closed on a bearish note, with the All-Share Index shedding by 0.33% to 99,468.90 points. The year-to-date return and market capitalization settled at 33.03% and ₦56.27 trillion, respectively. FIDELITYBK led the volumes with 46.78 million units, while SEPLAT led the values chart with ₦1.15 billion.
Outlook: We expect the mixed sentiment to persist.
Foreign Exchange
Naira appreciated against the USD by 0.47% to $/₦1,554.65.
Outlook: We expect volatility to persist.
Eurobonds
The African Eurobonds witnessed a bullish posture today, due to the lesser-than-expected US inflation at 3.0% (Est. 3.10%), from 3.30% in May. Thus, the average mid-yield for the Nigerian curve decreased by 15 bps to 9.60%.
Outlook: We expect the bullish bias to spill into tomorrow’s session.
Commodities
Crude oil increased today as inflation eased, bolstering hopes that the Federal Reserve will cut interest rates later this year. As a result, Brent prices increased by 0.27% to $85.31, while WTI prices increased by 0.48% to $82.49. Additionally, gold prices rose by 1.64% to $2,418.40 per ounce at the time of this report.
Outlook: We expect the volatility to persist.
