System Liquidity
System liquidity improved significantly, opening with a surplus of ₦2.58 trillion due to large inflows from bond and NTB maturities. This eased funding pressures, leading to a slight decline in average funding rates. Overnight and repo rates moderated, and funding costs are expected to remain range-bound in the near term.
Treasury Bills
The NTB market traded bearish, driven by sell-side pressure following the previous auction results. Yields rose across most maturities, particularly in the short-to-mid segment, reflecting weak demand. Average benchmark rates increased, with market performance expected to align with prevailing liquidity levels.
FGN Bonds
The FGN bond market was calm to mixed as investors stayed cautious ahead of upcoming auctions. Trading activity focused on short- to mid-tenor bonds, while long-dated bonds remained quiet. Overall benchmark yields were stable, with market direction expected to depend on liquidity conditions and auction outcomes.
Eurobonds
African Eurobonds traded positively, supported by investor optimism despite softer oil prices. Nigerian Eurobonds recorded broad-based yield declines, especially at the short end, reflecting strong buying interest. Overall benchmark yields fell, with sentiment expected to remain supportive in the near term.
Nigerian Equities
The equities market closed lower as profit-taking dominated. Losses in banking, industrial, consumer goods, and oil & gas stocks outweighed gains in select counters. Market breadth was negative, trading activity was muted outside block trades, and sentiment remains mixed amid repositioning for dividends.
Foreign Exchange
The Naira weakened slightly at the official market due to persistent demand outpacing limited supply. External reserves improved marginally, providing some buffer. In the absence of stronger FX inflows, the exchange rate is expected to trade around current levels in the near term.
Commodities
Oil prices declined due to easing geopolitical tensions and supply-demand considerations, reversing earlier gains. Gold prices rose on safe-haven demand and a weaker U.S. dollar, though outlook suggests gold may face pressure if risk appetite improves, while oil could find modest support.
