Money Market
Ample system liquidity persisted as ₦145 billion in bond coupon payments balanced out CBN’s FX settlement outflows. This kept money market rates anchored near 26.5%, with the Overnight Policy Rate (OPR) easing to 26.50% (-5.10%) and Overnight Rate (O/N) rate settling at 26.96% (-5.09%).
Outlook: Rates should hold steady tomorrow with FAAC inflows expected to boost liquidity – barring any surprise outflows.
Treasury Bills
The treasury bills opened with a slightly soft tone this morning before midday brought wider spreads across the curve. The Dec ’25 and Mar ’26 papers saw the most action, with the NTB average mid-rate eventually ticking up 2bps to close at 19.78%.
Outlook: Expect light activity tomorrow as market focus shifts to the NTB auction – the DMO’s offering ₦400 billion across the short, medium and long-dated papers.
FGN Bonds
A quiet session in the FGN bonds market today saw steady buying interest across the curve, particularly in the belly with Feb ’31s and Feb ’34s getting most of the attention. The average mid-yield edged down 2bps to settle at 18.80%.
Outlook: Tomorrow should bring more of the same sentiment, though we might see thinner trading volumes.
Eurobonds
African Eurobonds began today’s session with mixed performance, initially facing broad selling pressure before firming up later in the day. The recovery was supported by three key factors: rising oil prices, a marginally softer US dollar, and sustained buying interest across Nigerian and Angolan debt, along with select Egyptian papers. By session close, Nigerian Eurobonds had strengthened, with the average mid-yield declining 3 bps to settle at 10.37%.
Outlook: The prevailing sentiment appears likely to continue into tomorrow’s trading.
Nigerian Equities
The Nigerian equities market closed in the green, with the All-Share Index (ASI) rising by 49bps, bringing YTD gains to 1.76%. Market breadth was strong with 41 gainers against 20 losers. INTBREW (+10.00%) led the gainers, while INTENEGINS (-9.46%) topped the laggards. Trading activity was relatively quiet, though the banking sector dominated, accounting for over 40% of total market volume. ACCESSCORP led the volume chart with 38.61m shares, while ZENITHBANK topped the value chart with trades worth N1.07bn. The NGX Banking Index advanced 71bps, buoyed by gains in UBA (+2.8%), ACCESSCORP (+2.49%), and ZENITHBANK (+2.27%). In the Consumer Goods space, INTBREW (+10%) and NB (+9.94%) pushed the index up 257bps. The Oil & Gas Index dipped 11bps on OANDO (-1.5%), while the Industrial Index edged up 7bps. Value traded declined by 8.99% to $4.48m. Gains were mostly recorded in the early session, with market trends flattening toward close amid light crossing activity.
Outlook: The current trading pattern looks set to continue into tomorrow’s session.
Foreign Exchange
The Naira held steady in the interbank NFEM, with the USD/NGN pair fluctuating between $/₦1,598.50 and $/₦1,610. However, by the close of trading, the Naira weakened slightly by 17 bps to settle at $/₦1,602.6318.
Outlook: Range-bound trading should continue for the Naira in the near term.
Commodities
Oil prices gained over $1 per barrel on Tuesday, rebounding from the previous session’s sharp losses, as fresh U.S. sanctions on Iran and gains in global equity markets lifted investor sentiment. Brent crude rose $1.15, or 1.7%, to $67.41 per barrel, while the U.S. West Texas Intermediate (WTI) contract for May delivery, expiring Tuesday, climbed $1.24, or 2%, to $64.32. Meanwhile, gold prices extended their record-breaking streak, surging past $3,500 per ounce, driven by a weaker dollar, concerns over U.S. trade policy, and President Donald Trump’s renewed criticism of the Federal Reserve. Spot gold held steady at $3,425.91 after earlier peaking at $3,500.05. U.S. gold futures edged up 0.4%, settling at $3,438.40 per ounce.
Outlook: While markets bounced back Monday, the lingering threat of U.S. tariffs continues to spook investors – many fear these measures could choke global growth and keep downward pressure on oil prices.
