Funding Swings, Stabilising Yields, and Robust Equity Momentum
System liquidity was highly volatile over the review week, opening at ₦5.41 trillion, rising to ₦6.17 trillion, and peaking at ₦7.09 trillion mid‑week before tightening sharply to ₦4.30 trillion following significant OMO and NTB auction activities; it later recovered to ₦4.79 trillion on 10 April 2026. This movement was driven by a combination of OMO sales of ₦2.31 trillion, primary market sales of ₦731.38 billion, and liquidity‑boosting inflows, including OMO repayment of ₦2.12 trillion, NTB repayments, and changes in SDR placements, which initially rose to ₦6.98 trillion before moderating to ₦4.61 trillion by week‑end. The OPR remained stable at 22%, while OVN inched up to 22.35%, leading to a slight easing in the average funding rate to 22.18%.
In the Treasury‑bill market, activity was mostly quiet and stable, with the benchmark NTB curve experiencing mild declines. Long‑dated bills such as FEB 2027 and MAR 2027 saw rate compressions of 18 bps and 22 bps, respectively, helping to pull the average NTB benchmark yield down by 14 bps to 15.97% for the week. The FGN bond market traded cautiously, oscillating between mild bearish and bullish sentiment, resulting in an overall 10 bps increase w/w to 15.89%, despite selective buying interest in maturities like 20‑Mar‑28, 15‑May‑33, and 21‑Feb‑34, which compressed by up to 31 bps. In contrast, some mid‑to‑long segment maturities saw slight yield expansions. The Eurobond market ended the week slightly positive, supported by shifting geopolitical developments, particularly a U.S.–Iran ceasefire understanding, which boosted sentiment mid-week and compressed short-end yields by 40–47 bps, contributing to a 34 bps w/w decline in the average benchmark yield to 7.13%.
The Nigerian equities market maintained strong bullish momentum, with the All‑Share Index (ASI) advancing 1.03% to 203,770.43 points, bringing YTD returns to 30.95%. Market sentiment was buoyed by impressive gains in heavyweights such as MULTIVERSE (+20.66%), UPDCREIT (+15.49%), INTENRGY (+12.54%), AUSTINLAZ (+10.47%), and UNILEVER (+10.00%), while trading activity was most pronounced in ACCESSCORP, ZENITHBANK, UBA, FIDELITYBK, and GTCO. Sector performance was broadly positive, led by the Banking Index (+5.10% w/w), with additional support from Oil & Gas and Consumer Goods, although Insurance experienced a decline of -3.64%. Overall trading activity strengthened, with volume up 17.70% w/w and value up 33.80% w/w, signaling sustained investor participation.
