System Liquidity
System liquidity opened the week with a surplus of ₦2.59 trillion, reflecting a ₦135.2 billion moderation from the prior week due to reduced placements at the CBN’s SDF despite bond coupon inflows. Funding conditions remained stable, with OPR and overnight rates unchanged at 22.50% and 22.75%.
Treasury Bills
The NTB secondary market traded on a mildly bullish note as ample liquidity supported demand, particularly in mid- to long-dated bills. Significant yield compression was recorded on select maturities, driving the average discount rate down by 22bps to 15.98%.
FGN Bonds
The domestic FGN bond market traded quietly as attention centered on the December bond auction and softer November CPI at 14.45%. Although ₦460 billion was offered, ₦596.47 billion was allotted from strong subscriptions. Secondary market activity was limited, with modest demand for short-tenor papers driving slight yield declines, while select longer maturities saw marginal yield increases. Overall sentiment remained cautious but stable.
Eurobonds
Nigeria’s Eurobond market started the week strongly, supported by declining U.S. Treasury yields, stable oil prices, and renewed demand for emerging market assets after recent sell-offs. Yields across Nigeria, Angola, and Egypt compressed, with Nigeria’s average sovereign yield easing 8bps to 7.16%.
Nigerian Equities
The Nigerian equity market closed flat, with the ASI marginally higher amid mixed performance across mid- and large-cap stocks. Gains in insurance and banking names offset losses in consumer goods. Trading activity was subdued, with value traded down sharply and a few large cross deals dominating turnover.
Foreign Exchange
The naira strengthened in the NFEM, closing at ₦1,451.82/$ as improved foreign portfolio inflows boosted dollar supply. Trading remained within a narrow band, signaling stability. External reserves stood at $45.47 billion, reflecting a strong YTD increase.
Commodities
Global oil prices declined as oversupply concerns and prospects of a Russia–Ukraine peace deal outweighed geopolitical risks tied to U.S.–Venezuela tensions. Brent fell to $60.26/bbl, while WTI dropped to $56.41/bbl. Gold prices edged higher amid cautious optimism over peace talks and ahead of U.S. jobs data, supporting a slightly positive but cautious outlook.
