System Liquidity
Liquidity remained in surplus, supported by coupon inflows on a maturing FGN bond and stronger DMB participation at the SDF window, with no recourse to the SLF. Funding rates held stable and should moderate further next session on expected fresh liquidity inflows.
Treasury Bills
The NTB market traded calm but bearish, with selling pressure pushing yields higher as offers outpaced scarce bids and investors positioned ahead of fresh supply. Activity in the OMO segment was more selective across near-term maturities. Focus now shifts to today’s primary auction across three tenors.
FGN Bonds
The bond market traded mixed and cautious, as activity moderated on mild profit-taking following last week’s post-auction rally. The short end saw buying interest and yields ease, the mid-to-long end held broadly flat. Sustained investor interest is expected to continue in the domestic space.
Eurobonds
The market stayed cautious, weighed down by elevated US Treasury yields and persistent geopolitical risk, though Nigeria’s improving inflation outlook and attractive sovereign yields kept selective demand intact. Yields are likely to stay under pressure near term, though Nigeria’s improving fiscal and reserve position should limit any sell-off.
Nigerian Equities
Equities closed negative, with all five major sectors declining, led by Banking and Insurance amid broadly weak market breadth. Despite the pullback, strong year-to-date returns continue to underpin sentiment. Expect cautious, choppy trading near term, with selective buying in fundamentally strong names providing support.
Foreign Exchange
The naira traded mixed, firming at NAFEM against the dollar and pound while holding flat in the parallel market. The market remains relatively stable, supported by ongoing monetary and fiscal policy refinements, and this stability should persist near term.
Commodities
Gold stayed supported near its highest level in months, driven by a weaker dollar, lower yields, and safe-haven demand, while Brent extended losses following fresh US sanctions targeting Iran. Gold should remain supported, though a hawkish Fed could cap gains, while oil is likely to stay volatile amid ongoing geopolitical risk.
