System Liquidity
Banking system liquidity remained strong, opening with a ₦2.25 trillion surplus driven by increased placements at the CBN’s SDF window. This excess liquidity pushed funding rates lower, though rates are expected to edge up slightly due to upcoming NTB maturities outweighing new issuances.
Treasury Bills
The NTB secondary market traded quietly as investors awaited the primary auction, keeping most rates flat across maturities. Mild pressure at the very short end caused a slight uptick in the average benchmark rate to about 16.74%.
FGN Bonds
The local bond market was calm but mildly bullish, with strong demand focused on mid-tenor maturities. Significant yield compression in the belly of the curve outweighed flat long-term papers, pulling the average benchmark yield marginally lower to around 16.29%.
Eurobonds
The African Eurobond market traded with a mildly positive tone as buying interest supported prices despite global risk concerns. Nigerian Eurobond yields mostly compressed slightly, leading the average benchmark yield to dip to about 7.06%, reflecting improved sentiment.
Nigerian Equities
The stock market closed strongly as positive sentiment in large-cap stocks lifted the All-Share Index by 1.28%, pushing year-to-date returns close to 8%. Gains were broad across banking, industrial, consumer goods, and oil & gas sectors, although overall trading value declined.
Foreign Exchange
The Naira strengthened by about 1.07% at the official market, supported by steady inflows from foreign investors and local participants. External reserves also increased slightly, and the exchange rate is expected to remain within the current trading band in the near term.
Commodities
Oil prices climbed around 3% on renewed geopolitical concerns linked to U.S.–Iran talks, supporting higher crude prices. In contrast, gold prices dipped slightly after a recent sharp decline, though safe-haven demand is expected to continue supporting precious metals.
