System Liquidity
System liquidity stayed strong, supported by ₦1.11tn OMO maturity inflow and sustained SDF placements, despite ₦583.5bn bond auction outflow. Funding rates declined sharply as OPR fell to 22.50% and OVN to 22.71%.
Treasury Bills
The NTB market traded volatile but ended bullish as strong liquidity drove increased demand. Yields declined 11bps w/w to 15.57%, although the 1-year bill showed mild softness.
FGN Bonds
Bond trading was largely quiet, with yields rising 14bps w/w to 15.61% after the DMO allotted ₦583.5bn at higher stop rates (2030: 15.90%, 2032: 16.00%). Mild profit-taking and cautious positioning dominated the long end.
Eurobonds
Africa Eurobonds rallied strongly on optimism for a U.S. Fed December rate cut, with benchmark yields declining 32bps w/w to 7.38%. Broad risk-on sentiment persisted despite weaker oil prices.
Nigerian Equities
The NGX closed slightly negative as the ASI fell 0.14% w/w, pressured by losses in BUACEMENT, NB, UBA, and OANDO. Market turnover improved, but sector performance was mostly bearish except Banking (+0.7%). YTD return moderated to +39.4%.
Foreign Exchange
The naira appreciated 0.69% w/w to ₦1,446.74/USD, supported by strong FPI inflows and improved USD supply. External reserves rose to $44.6bn (+$344.9m).
Commodities
Oil prices ended higher w/w (Brent: $62.38/bbl) amid geopolitical risks and ahead of the OPEC+ meeting. Gold jumped 4.05% on expectations of a U.S. Fed rate cut.
