System Liquidity
Liquidity opened significantly higher at ₦5.97tn, driven mainly by large SDF placements and minor OMO maturities. Despite the surplus, the NOFR held steady at 22.00%. Liquidity is expected to remain elevated in the next session barring shocks.
Treasury Bills
The NTB market traded quietly with a mild bearish bias as investors took profits at the mid-to-long end ahead of expected supply. Average yields rose slightly to 16.03%. Mixed-to-bearish sentiment is expected ahead of the MPC meeting and auction supply.
FGN Bonds
The local bond market was quiet to slightly bearish following the May bond auction. Select papers saw mild yield increases, while most of the curve remained stable, leaving the benchmark yield flat at 15.83%. Investors remain cautious ahead of MPC outcomes.
Eurobonds
The Nigerian Eurobond market traded bearish as rising U.S. Treasury yields and Middle East tensions pressured sentiment. Selling was strongest at the short-to-mid segment, pushing average yields up 6bps to 7.05%. A cautious and selective investor stance is expected to persist.
Nigerian Equities
The equities market rebounded, with the ASI and market cap rising 0.57% on bargain hunting in large and mid-caps. Industrial Goods led gains, though trading activity weakened and market breadth stayed negative. Positive sentiment may continue on sector rotation and stock-picking.
Foreign Exchange
The Naira weakened marginally to ₦1,373.70/$ due to stronger dollar demand, though reserves increased to $48.68bn. Stability is expected to continue, supported by FX reforms, liquidity improvements, and sustained portfolio inflows.
Commodities
Oil and gold prices declined amid geopolitical developments and a stronger U.S. dollar. Brent fell to about $110.45/bbl while gold dropped over 1%. Oil is expected to remain under pressure in the near term.
