System Liquidity
Liquidity opened slightly lower at ₦5.29tn, down ₦42.54bn from the previous day, supported mainly by ₦5.06tn in CBN SDF placements. Funding conditions stayed stable as the NOFR held at 22.0%. Looking ahead, funding rates may ease further, supported by an expected ₦249.88bn coupon inflow from the FGN May 2033 bond.
Treasury Bills
The NTB market remained quiet and stable, with yields unchanged across maturities. Limited trading interest reflected cautious investor positioning, leaving the average benchmark yield steady at 16.02%.
FGN Bonds
The domestic bond market traded quietly with subdued activity as investors positioned ahead of CPI data and reacted to the May PMA circular. Bearish sentiment was strongest in the mid-segment, pushing average benchmark yields up by 2bps to 15.80%.
Eurobonds
Nigeria’s sovereign Eurobond market traded mixed but largely bearish, with mild yield increases across the curve. The 10-year and 15-year yields rose slightly, reflecting cautious investor sentiment amid global developments.
Nigerian Equities
The equities market closed slightly lower, with the ASI down 0.10% despite a strong 62.1% YTD return. Trading activity weakened sharply, and sector performance was mostly negative, led by losses in banking and consumer goods stocks.
Foreign Exchange
The naira weakened slightly, closing at ₦1,370.89/$ due to stronger dollar demand, though FX inflows and reforms continue to support liquidity. External reserves rose to $48.51bn, and near-term FX stability is expected.
Commodities
Oil prices edged higher as shipping activity resumed through the Strait of Hormuz, with Brent near $105.94/bbl. Gold slipped slightly amid dollar weakness and geopolitical developments. Oil may trade lower next session as Middle East tensions ease.
