System Liquidity
The interbank market enjoyed robust liquidity from coupon, FAAC, OMO, and NTB inflows, driving DMB placements at the CBN’s SDF window and pushing average funding costs down 204bps w/w to 24.69% following the MPC’s rate cut.
Treasury Bills
The T-bills market closed bullish this week, buoyed by strong system liquidity and the MPC’s rate cut, with early declines giving way to selective midweek selling before robust late demand drove long-end yields down sharply, leaving average NTB yields 34bps lower w/w at 16.54%.
FGN Bonds
The FGN bond market closed mixed this week, with early buying in mid-tenors giving way to muted sentiment after the MPC’s rate cut and caution ahead of next week’s ₦200bn auction, leaving average benchmark yield 8bps lower w/w at 16.51%.
Eurobonds
African Eurobonds traded mixed but closed weaker this week, as early selective demand on Powell’s data-dependent comments was offset by risk-off sentiment from strong U.S. labor data, new tariffs, and sticky inflation, with Nigerian papers ending softer as average mid-yield fell 7bps w/w to 7.81%.
Nigerian Equities
The equities market recorded a modest 0.2% w/w gain, supported by the CBN’s 50bps rate cut, stronger trading activity, and mixed sectoral performance that left the NGX-ASI at 142,133.02 points with a YTD return of 38.1%.
Foreign Exchange
The naira appreciated by about 49bps w/w to close at ₦1,480.66/$, supported by improved liquidity from local participants, oil inflows, and FPIs, while foreign reserves rose by $192.95m to $42.23bn.
Commodities
Oil prices rose as Brent up 6.19% to $70.13 and WTI gaining 5.32% to $65.72, driven by Ukraine’s drone attacks on Russia’s energy infrastructure that disrupted fuel exports, while gold advanced 2.04% to $3,760.24 amid U.S. inflation data supporting expectations of further Fed rate cuts.
