FIXED INCOME MARKETS
Money Market

System liquidity opened narrowly positive today, following yesterday’s deficit balance. Thus, the Open Repo Rate (OPR) decreased by 244 bps to 34.17%, and the Overnight Rate (O/N) dropped by 191 bps to 35.06%.

Outlook: We expect opening system liquidity to remain positive tomorrow.

Treasury Bills

The treasury bills market witnessed mixed sentiments, with an overall bullish settlement. Consequently, the average mid-rate across the benchmark NTB papers decreased by 14 bps to 21.24%.

Outlook: We expect the bullish sentiment to linger.

FGN Bonds

The local FGN bonds market traded cautiously as participants continued to anticipate next week’s FGN bond auction. However, there was sustained buying interest for May 2033, 2049, 2050, and 2053 papers. Overall, the average mid-yield fell marginally by 1 bp to 19.52%.

Outlook: We expect the current trend to persist tomorrow.

Equities

The Nigerian stock market closed on a negative note, with the All-Share Index falling by 0.20% to reach 97,199.60 points. The year-to-date return and market capitalization settled at 29.99% and ₦55.18 trillion, respectively. VERITASKAP led the highest volume charts with 38.41 million units, while GTCO led the values chart ₦1.65 billion.

Outlook: We expect the mixed-to-bearish trend to resurface tomorrow.

Foreign Exchange

Naira depreciated against the USD by 0.25% to $/₦1,586.04.

Outlook: We expect volatility to persist.

Eurobonds

The Eurobonds market was bullish, supported by lower-than-expected US Consumer Price Index. US inflation grew by 0.20% m/m, in line with market forecasts. However, year-on-year inflation grew by 2.90% y/y, lower than the estimated 3.0% y/y. Overall, the average mid-yield for Nigerian papers declined by 6 bps to 10.33%.

Outlook: We anticipate that the current bullish bias will be influenced by tomorrow’s indicators, including Initial Jobless Claims and US retail sales.

Commodities

Brent prices fell by 0.30% to $80.45, while WTI prices lost 0.88% to $77.66. Elsewhere, gold prices decreased by 0.90% to $2,485.20 per ounce after data showed U.S. consumer prices rebounded as expected in July, pouring water on expectations for a sizable rate cut from the Federal Reserve next month.

Outlook: We expect the volatility to persist.

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