Money Market
System liquidity remained strong but experienced a slight decline due to the settlement of the NTB auction (net debit of ₦173.44 billion). Consequently, interbank rates increased, with the Overnight Policy Rate (OPR) rising by 50 bps to 26.86% and the Overnight Rate (O/N) climbing by 75 bps to 27.46%.
Outlook: We anticipate that interbank rates will stay stable at their present levels.
Treasury Bills
The Treasury bills market experienced an active trading session following the results of yesterday’s NTB auction, where the stop rate for the 364-day paper decreased by 57 bps, closing at 22.93%. As a result of the unmet bids, interest intensified in the secondary market, particularly for the newly issued 1-year NTB maturing on December 4, 2025, which settled c.100 bps lower than the auction rate. Overall, the average mid-rate for the benchmark NTB papers ended at 22.80%.
Outlook: We expect the same sentiment to persist.
FGN Bonds
The local bond market had a quiet session, with moderate interest seen in the February 2031 and May 2033 papers. However, very few trades were executed in the middle of the curve. Overall, the average mid-yield settled at 19.42%.
Outlook: We expect the same sentiment to persist tomorrow.
Eurobonds
The Eurobonds market closed firmly as investor sentiment improved, particularly in Sub-Saharan Africa and North African papers, driven by renewed buying interest. Anticipation of a 25bps rate cut from the ECB, likely mirrored by the Federal Reserve, fuels this optimism. As a result, the average mid-yield for Nigerian bonds dropped by 16 bps to 9.18%. Meanwhile, U.S. Treasury yields rose, recovering from recent lows ahead of Friday’s Non-Farm Payrolls report, which is expected to indicate a resilient labor market.
Outlook: We anticipate that the same sentiment will continue to prevail.
Nigerian Equities
The Nigerian stock market wrapped up today’s trading session in decline, with the NGX-ASI and market capitalization slipping by 6 bps to end at 98,114.11 points and ₦59.47 trillion, respectively. This drop was influenced by falling share prices of WAPCO (-2.05%), ACCESSCORP (-1.84%), ZENITHBANK (-1.68%), and ARADEL (-1.48%). As a result, the ASI’s year-to-date growth now stands at 31.21%. Despite the overall decline, three out of five tracked indices saw gains, particularly the Insurance Index, which rose by 3.13%.
Outlook: We expect mixed sentiments tomorrow.
Foreign Exchange
The interbank Electronic Foreign Exchange Market system saw the Naira strengthen significantly, and trades took place at rates ranging from $/₦1,550 to $/₦1,638.64. The NAFEX rate concluded at $/₦1,605.30.
Outlook: We expect the Naira to continue to trade within a similar range.
Commodities
Oil prices climbed after OPEC+ decided to postpone increases in crude production. Currently, Brent crude is priced at $72.77 per barrel, and WTI is c. $69.04. On the other hand, gold prices fell as U.S. Treasury yields strengthened following the release of weekly jobless claims data. The market awaits U.S. non-farm payroll figures for new insights into the Federal Reserve’s approach to interest rate cuts. Gold is currently valued at about $2,640.85 per ounce.
Outlook: We anticipate that geopolitical and macroeconomic factors will continue to affect market sentiment.
