Money Market
Opening system liquidity improved today, supported by FGN Sukuk 2024 maturity. However, the interbank rates closed higher due to the OMO auction sale during the day. Specifically, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 169 bps and 172 bps to 21.97% and 22.67%, respectively.
Outlook: We expect the interbank rates to be elevated tomorrow due to the recent OMO auction sale, though the anticipated FGN coupons should support system liquidity.
Treasury Bills
The treasury bills market experienced a downward trend, with more people selling than buying, especially for the newly issued 1-year bill (25-Sep-2025). This trend became more pronounced after the CBN conducted an OMO auction and sold ₦252.90 billion of the 362-day bills despite offering ₦500 billion across 3 different tenors. As a result, the average interest rate for the benchmark NTB increased by 22 bps to 20.46%.
Outlook: We expect the same sentiment to persist tomorrow.
FGN Bonds
The local FGN bonds market remained bearish, with yields increasing on selected papers (specifically the 2031 and May 2033 papers). Most participants remained pessimistic due to the recent interest rate hike. However, towards the close of the market, a few buyers resurfaced. As a result, the average mid-yield rose by 6 bps to close at 18.79%.
Outlook: We expect a similar play at tomorrow’s session, though coupon inflows should drive some buying interest.
Eurobonds
The Eurobonds market experienced a pullback from its recent bullish run, with selling interests in Nigeria and Angola driven by lower oil prices and some profit takings. The average benchmark yield across Nigerian papers declined by 9 bps to 9.46%.
In other news, the US economy grew at an annualized rate of 3% in the second quarter of 2024, unchanged from the second estimate and above an upwardly revised 1.6% expansion in the first quarter.
Outlook: Tomorrow, the focus will shift to the Fed’s preferred inflation measure, PCE data.
Nigerian Equities
The Nigerian stock market witnessed a mixed to bearish theme, with selling pressure on MTNN and OKOMUOIL contributing to the bearish trend. The All Share Index (ASI) closed at 98,523.56, marking a 47-basis point decline from the previous day. Overall, the sector performance was bearish, as the Banking, Industrial Goods, and Oil & Gas indices declined while the Consumer Goods and Insurance indices advanced.
Outlook: We expect the mixed sentiment to persist tomorrow.
Foreign Exchange
At the NAFEM window, the Naira appreciated by 5.48% against the USD, closing at $1 to ₦1,576.10.
Outlook: We expect the volatility to persist.
Commodities
Oil prices fell by nearly 3% due to a report stating that Saudi Arabia plans to increase production later this year. At the time of the report, Brent prices dropped by 2.87% to $71.35, while WTI prices declined by 3.27% to $67.21. On the other hand, gold prices continued to rise, reaching $2,694.30 per ounce.
Outlook: We expect the volatility to be sustained.
