System Liquidity
Interbank liquidity rose sharply to ₦2.26tn from ₦1.21tn ahead of tomorrow’s NTB auction. However, funding costs increased, with the average rate up 60bps to 27.35%, the OPR up 50bps to 27.50%, and the O/N rate up 70bps to 27.20%.
Treasury Bills
The Treasury bill market was quiet as focus shifted to the CBN’s OMO and upcoming NTB auctions. At the OMO auction, ₦600bn was offered, but only the 245-day bills were allotted—₦2.12tn at a 23.70% stop rate—despite ₦2.2tn in total bids. No bids were accepted for the 105-day bills.
FGN Bonds
The FGN bond market traded cautiously due to the large ₦2.12tn OMO auction allotment. Yields rose on the 2031 and 2033 bonds but declined on the 2032 bond. Overall, the average benchmark yield inched up by 1bp to 16.27%.
Eurobonds
African Eurobonds remained bullish despite falling global oil prices, driven by geopolitical tensions. Nigerian Eurobond yields edged up by 3bps to 8.11%.
Nigerian Equities
The Nigerian equities market extended its bullish trend as the NGX-ASI rose 0.50% to 144,796.37 points, driven by strong buying in large-cap and low-priced stocks. The Insurance sector led with a 7.51% gain following presidential approval of the Insurance Reform Bill. Industrial Goods and Oil & Gas rose 3.35% and 0.91%, respectively, while Banking and Consumer Goods declined. Market activity improved, with trade volume and value up 26.73% and 17.28%. Major trades included GTCO, FIDELITYBK, ARADEL, and WAPCO.
Foreign Exchange
The interbank FX market remained stable and liquid despite moderate FX demand. The USD/NGN traded between ₦1,532.0 and ₦1,534.0, with the Naira appreciating slightly by 2bps to close at ₦1,533.0/$1.
Commodities
Oil prices fell due to rising OPEC+ supply and demand concerns, with Brent and WTI down $1.17 to $67.59 and $65.12 per barrel. Meanwhile, gold prices rose to near two-week highs on expectations of U.S. rate cuts, with spot gold at $3,380.08/oz and futures at $3,433.77/oz.
