System liquidity remained firmly in surplus throughout the week, supported by OMO maturities and PMA repayments, peaking midweek before moderating towards Friday due to auction settlements and CBN liquidity mop-up activities. Despite fluctuations in liquidity balances, the overnight funding rate (NOFR) remained broadly stable, reflecting balanced short-term funding conditions.
The NTB secondary market traded on a largely quiet and range-bound note as investors adopted a cautious stance ahead of the NTB PMA and MPC meeting. While trading opened with muted activity and largely unchanged yields, strong subscription levels at the NTB auction triggered mild profit-taking in the secondary market. Towards the end of the week, sentiment improved slightly as steady demand and balanced liquidity supported selective buying interest, resulting in a modest increase in benchmark yields.
The Nigerian equities market paused its bullish momentum as profit-taking drove a slight decline in the benchmark index. Despite the pullback, trading activity remained resilient, particularly in tier-1 banking and fundamentally strong counters, while sectoral performance was mixed with gains in banking and oil & gas offset by losses in insurance, industrial, and consumer goods stocks. Overall sentiment remained constructive despite consolidation.
