System Liquidity
System liquidity opened in a strong surplus of ₦3.77tn, buoyed by a sizeable OMO repayment despite CBN liquidity sterilisation via OMO and SDF. Funding conditions remained stable, with OPR and OVN rates flat at elevated levels.
Treasury Bills
The NTB market remained calm-to-bearish amid cautious demand, as attention shifted to the OMO auction. Limited activity led to yield increases in select tenors, nudging the average benchmark rate higher by 6bps.
FGN Bonds
The FGN bond market traded cautiously following the January Bond PMA and early OMO announcement, which dampened investor appetite. Activity was concentrated in short-to-mid tenors, with mild yield increases pushing the average benchmark yield up by 1bp.
Eurobonds
African Eurobonds traded on a mildly bearish tone amid elevated U.S. Treasury yields and uncertainty around Fed easing. Nigerian Eurobonds saw broad-based yield upticks across the curve, resulting in modest losses and a 5bps rise in average benchmark yields.
Nigerian Equities
Equities closed positive, with the ASI up 9bps, supported by strong performances in select oil & gas and mid-cap stocks. Market breadth was positive, though sector performance was mixed as banking stocks weighed on gains elsewhere.
Foreign Exchange
The naira appreciated marginally at the NFEM, supported by improved dollar supply and rising external reserves. Exchange rate stability is expected in the near term barring any major supply-side disruptions.
Commodities
Oil prices were largely stable as geopolitical tensions eased, while gold rallied to record highs on renewed safe-haven demand following heightened global trade concerns. Overall sentiment remained cautious.
