System Liquidity
System liquidity strengthened to a ₦3.91 trillion surplus, driven by heavy SDF placements and bond coupon inflows. Funding conditions were stable, with average funding cost at 22.65%, OPR 22.50%, and OVN 22.79%.
Treasury Bills
NTB trading remained subdued with balanced demand across maturities and no major yield movement. Rates stayed flat along the curve, leaving the average benchmark Treasury bill rate unchanged at 16.86%, amid cautious positioning ahead of auctions.
FGN Bonds
The FGN bond market was calm to positive ahead of the January PMA, with activity focused on short-to-mid tenors. Select mid-curve buying compressed yields, nudging the average benchmark yield 1bp lower to 16.74%.
Eurobonds
African Eurobonds traded positively ahead of the Fed decision, with Nigerian yields declining across most maturities. The average Nigerian Eurobond yield eased 5bps to 7.05%, reflecting renewed buying interest amid cautious sentiment.
Nigerian Equities
The equity market closed flat, reflecting mixed investor sentiment amid gains in select banking and consumer stocks and losses elsewhere. Trading activity declined, dominated by cross deals, while market breadth ended slightly negative.
Foreign Exchange
The Naira appreciated at the NFEM on improved foreign portfolio inflows, closing at ₦1,418.95/$. External reserves rose to $46.01 billion, supporting near-term currency stability barring major shifts in dollar supply.
Commodities
Oil prices held firm on supply disruptions and geopolitical tensions, with Brent around $65.85/bbl and WTI near $60.95/bbl. Gold surged above $5,000/oz on safe-haven demand, reinforcing a risk-off tone ahead of the Fed’s rate decision.
