System Liquidity: Liquidity Volatile as CBN Mop-Up Drives Midweek Deficit
System liquidity fluctuated during the week, briefly turning negative midweek due to aggressive OMO sales, before closing in surplus on maturities and strong SDF placements. Funding rates ticked higher, reflecting tighter conditions.
Treasury Bill: Bearish Auction Outcome Pushes NTB Yields Higher
The NTB market turned bearish following auction results and a large OMO allotment, triggering sell-offs across the curve. Consequently, the average benchmark rate rose by 20bps w/w.
FGN Bonds: Cautious Trading Persists Amid Supply Signals
FGN bonds traded with a mild bearish bias as investors reacted to supply signals and competing auctions. Mid-curve papers saw the most pressure, while overall yields remained largely flat.
Eurobonds: Improved Risk Appetite Drives Yield Compression
After early-week weakness, Nigerian Eurobonds rebounded on improved global risk appetite and geopolitical developments. Broad-based buying drove yields lower, with average yields declining 20bps w/w.
Nigerian Equities: Profit-Taking Halts Equity Market Rally
The equities market reversed gains as profit-taking across major stocks dragged the ASI lower. Losses were broad-based, although Oil & Gas stocks provided some support.
Foreign Exchange: Naira Weakens Slightly Amid FX Supply Constraints
The Naira depreciated marginally w/w at the NFEM window due to weak FX supply, despite improved external reserves which helped limit downside pressure.
Commodities: Geopolitical Tensions Lift Oil and Gold Prices
Oil prices advanced on heightened Middle East tensions, while gold surged on safe-haven demand amid global uncertainty and a softer dollar.
