Money Market
Interbank liquidity tightened sharply today after NTB auction settlements and substantial CBN FX outflows, pushing the Overnight Policy Rate (OPR) up 33bps to 26.83% and Overnight Rate (O/N) rate to 27.29%.
Outlook: We anticipate interbank rates will stay near present levels absent significant funding inflows.
Treasury Bills
Activity in the Treasury bills market was primarily driven by yesterday’s NTB auction results. While demand focused on the 26 Mar 2026 paper, the newly issued 1-year NTB (09 Apr 2026) saw no offers from auction winners despite strong market appetite. The auction itself recorded robust demand, with total subscriptions reaching ₦1.126 trillion against an ₦800 billion offer, though only ₦424.576 billion was allotted. Stop rates rose 50bps (91-day) and 100bps (182-day) to 18.50% and 19.50%, respectively, while the 364-day held steady at 19.63%. Consequently, the benchmark NTB average mid-rate fell 49bps to 19.53%.
Outlook: We expect market sentiments to remain choppy in the near term.
FGN Bonds
Trading activity in the local bonds market remained subdued with a slightly negative bias, as sellers dominated the short-to-mid tenor segment – especially on the Apr 2029, Feb 2031, and May 2033 papers. The benchmark FGN bond average mid-yield closed at 18.76%.
Outlook: The absence of bullish catalysts and continued investor reticence suggest sustained mixed-to-weak sentiment in coming sessions.
Eurobonds
Early gains in the African Eurobonds market—initially supported by the Trump administration’s 90-day tariff pause—were fully erased after confirmation of new 145% cumulative tariffs on Chinese imports. The development reignited risk aversion, pushing prices below yesterday’s levels. Nigerian Eurobond yields rose 6bps to close at 11.28% amid the heightened caution. In other news, the Bureau of Labor Statistics reported Thursday that U.S. consumer prices declined unexpectedly in March, coinciding with President Trump’s preparations for new trade tariffs. The headline CPI fell 0.1% (seasonally adjusted), slowing the annual inflation rate to 2.4% from February’s 2.8%. Core inflation (ex-food/energy) showed moderating pressures, rising just 0.1% m/m to maintain a 2.8% y/y pace – the lowest annual core reading since March 2021.
Outlook: The lack of meaningful progress in US-China trade negotiations suggests prolonged risk-averse market conditions.
Nigerian Equities
The Nigerian equities market closed on a positive note as the All-Share Index (ASI) advanced by 58bps, pushing YTD returns to 1.81%. Market breadth was notably strong with 45 gainers versus 11 decliners, reflecting bullish sentiment across key sectors. CAVERTON (+10%) led the gainers’ chart, while ABCTRANS (-10%) topped the losers. Banking stocks drove market activity, lifting the NGX Banking Index by 265bps on gains in FIDELITYBK (+8.94%), ZENITHBANK (+4.02%), UBA (+3.52%), and GTCO (+2.62%). ACCESSCORP led both the volume and value charts with 77.86 million shares traded, worth ₦1.62 billion, although it declined slightly (-1.19%). The Consumer Goods Index rose 59bps on buying interest in HONYFLOUR, DANGSUGAR, and INTBREW. OANDO (+1.98%) supported an 8bps gain in the Oil & Gas Index, while the Industrial Index dipped 3bps on weakness in CAP (-7.45%). Despite an 18.24% drop in value traded to $6.01m, crosses in banking names and 5m MTNN at ₦230.00 provided notable liquidity.
Outlook: Trading sentiment is expected to remain mixed in tomorrow’s session.
Foreign Exchange
The interbank market remained bid amid continued demand pressure. To stabilize the market, the CBN intervened by selling $135.45 million at rates between $/₦1,500 and $/₦1,636. During the session, the USD/NGN pair traded within a range of $/₦1,515 to $/₦1,631.
Outlook: The Central Bank is anticipated to maintain its market stabilization interventions in the near term.
Commodities
Crude oil prices dropped over 4% on Thursday, weighed down by President Donald Trump’s decision to sharply raise tariffs on China, despite a 90-day pause on increases for most other countries. U.S. crude declined by $2.66, or 4.27%, to settle at $56.69 per barrel, while Brent crude dropped $2.64, or 4.03%, to $62.84. Meanwhile, gold prices soared nearly 3% to a record high as a weakening dollar and intensifying U.S.-China trade tensions boosted demand for safe-haven assets. Spot gold surged 2.5% to $3,158.28 an ounce, after hitting an all-time high of $3,171.49 earlier in the session. U.S. gold futures also climbed 3.3% to $3,179.40. Trump raised China tariffs to 125% from 104%.
Outlook: Expect continued risk-off positioning as US-China trade tensions show no signs of abating.
