System Liquidity

The interbank market saw improved liquidity, rising by ₦261.25 billion week-on-week to ₦1.61 trillion, despite outflows from the FGN bond auction and a sizable OMO auction by the CBN. Funding costs remained stable, with the OPR steady at 26.50% and the O/N rate easing slightly to 26.90%.

Treasury Bills

The Treasury bills market ended the week bearish, with average yields rising by 9bps to 16.36% amid expectations of further OMO auctions to absorb excess liquidity. At the OMO auction, the CBN attracted ₦1.63tn in bids but allotted ₦1.55tn solely in the 204-day bill at a 23.87% stop rate, indicating strong demand for longer tenors.

FGN Bonds

The FGN bonds market traded with a bearish tone as improved offers, profit-taking, and weak demand pushed average yields up by 12bps to 16.4%. At the PMA, the DMO offered ₦80.00bn but allotted ₦185.93bn across the 2029 and 2032 re-openings, amid lower total subscriptions of ₦300.70bn and a bid-to-cover ratio of 1.6x.

Eurobonds

African Eurobonds had a volatile week, initially rising on improved risk appetite following the U.S.–EU tariff deal, but later pressured by unrest in Angola. The market rebounded after the U.S. Fed held rates, and Nigerian Eurobonds ended the week slightly firmer, with the average mid-yield down 1bp to 8.24%.

Nigerian Equities

The local bourse closed the week bullish, gaining 507bps w/w to 141,263.05 points, driven by strong performances in Industrial Goods and Banking stocks, especially DANGCEM, BUACEMENT, and ZENITHBANK. Positive investor sentiment, bargain hunting, and offshore interest lifted several stocks to fresh 52-week highs, despite some profit-taking in the Oil & Gas sector.

Foreign Exchange

The naira weakened slightly by 7bps w/w to close at ₦1535.5/$, pressured by sustained demand despite a relatively stable trading range throughout the week. However, external reserves rose by $726.80 million to $39.36 billion, offering some support to market stability.

Commodities

Oil prices rose over 2% w/w on geopolitical tensions and trade concerns. Brent hit $69.5/bbl, WTI $67.25/bbl. Gold gained 0.8% on weak U.S. jobs data and safe-haven demand.