System Liquidity
System liquidity improved, opening with a surplus of ₦2.24 trillion, supported by higher DMB placements at the CBN’s SDF and primary market repayments. Despite ample liquidity, average funding costs edged higher as overnight rates spiked slightly.
Treasury Bills
The NTB market traded quietly, supported by improved system liquidity. Most tenors closed unchanged, with mild buying interest at the long end. Average benchmark rates dipped slightly, indicating stable demand conditions.
FGN Bonds
The FGN bond market remained largely calm with selective participation. Most maturities closed flat, though mild demand compressed yields on a few mid-tenor papers. Overall benchmark yields eased marginally, reflecting a balanced and cautious market.
Eurobonds
African Eurobonds traded bearish amid elevated U.S. Treasury yields, global uncertainty, and profit-taking. Nigerian Eurobonds saw yield expansion across the curve, resulting in mild losses and a rise in average benchmark yields. Cautious sentiment is expected to persist.
Nigerian Equities
Equities opened the week slightly negative due to profit-taking in bellwether stocks, though market breadth remained positive. Banking stocks outperformed, while consumer goods lagged. Trading activity was subdued with lower value traded. Near-term sentiment remains mixed.
Foreign Exchange
The Naira weakened modestly at the NFEM due to demand-supply imbalance, trading within a narrow range. External reserves improved marginally, offering some buffer. The exchange rate is expected to remain broadly stable barring supply shocks.
Commodities
Oil prices traded relatively steady amid easing geopolitical tensions and mixed macro signals. In contrast, gold surged to record highs on heightened geopolitical risks and renewed safe-haven demand. Cautious trading is expected to continue.
