System Liquidity
Liquidity conditions worsened due to CRR debits, a massive ₦1.25tn OMO auction, and CBN FX settlements. Despite temporary relief from NTB redemptions and FPI inflows, interbank rates rose sharply. OPR surged 467bps w/w to 31.50%, while O/N hit 32.17%. Net system liquidity swung to a ₦118.17bn debit.
Treasury Bills
Bullish momentum dominated early in the week, boosted by strong demand and no NTB auction. Both NTB and OMO auctions were oversubscribed, with stop rates falling sharply. Later sessions turned slightly bearish. Overall, NTB benchmark yields dropped 207bps w/w to 16.26%.
FGN Bonds
Bonds rallied strongly midweek on demand for Feb 2031s, May 2033s, and Jun 2032s, supported by the Q3 issuance calendar. Sentiment softened later as wide bid/ask spreads limited trades. Despite this, yields declined 77bps w/w to 16.27%.
Eurobonds
Trading was cautious amid shifting U.S. tariff policies and geopolitical uncertainty. Despite erratic signals from Trump and fresh copper duties, Nigerian Eurobonds held firm. Supportive U.S. job data calmed markets, boosting risk appetite. Yields declined 6bps w/w to 8.55%.
Nigerian Equities
Equities surged 4.27% w/w as strong gains in banks and consumer stocks lifted the ASI. GTCO’s LSE listing and $100m raise attracted offshore interest. ZENITHBANK, UBA, and ACCESSCORP rallied, while mid-cap momentum also spiked. GTCO hit ₦95, and overall sentiment remained bullish with strong local and foreign participation.
Foreign Exchange
The Naira traded steadily within ₦1520–₦1530/USD, supported by improved liquidity and renewed CBN intervention ($50m sale). The OMO auction announcement also boosted FPI interest. Despite late-week demand pressure, volatility was subdued. The Naira depreciated marginally by 11bps w/w to ₦1,530.26/$, while reserves rose by $174.28m to $37.36bn.
Commodities
Oil prices rose over 2% on tight supply signals and tariff-related uncertainty. Brent settled at $70.36, WTI at $68.45. Gold surged past $3,356 on safe-haven flows and a weaker dollar. For the week, Brent gained 3%, WTI 2.2%, with silver hitting 13-year highs on bullish momentum.
