February 12, 2025/Coronation Research
Summary
- Last week, system liquidity closed negative at -N315.94bn (7th, February ’25), from N721.34bn in the previous week. Therefore, the Open Repo Rate (OPR) and Overnight Rate (O/N) edged higher at 32.42% and 32.75% respectively. We expect interbank rates to maintain the current levels barring any significant outflows.
- In the secondary fixed-income market last week, bullish sentiment was sustained across the market segments Average yields in the T-bills segment declined by 87bps to close at 22.53% w/w. At the primary auction last week, the CBN offered and allotted N670.00 despite the oversubscription. The stop rates were held steady at 18.00% for the 91-day instrument and 18.50% for the 182-day instrument but moderated by 148bps to 20.32% for the 364-day instrument, implying an effective yield of 25.48%.
- The average yields for OMO bills in the secondary market declined by 46bps to close at 27.09% w/w. Average yields declined by 15bps and 27bps in the short and mid segments of the curve, driven by strong demand for the Jan 2026 instrument. Meanwhile, average yields closed flat at the long end of the curve.
- In the FGN bond market, the average yields declined by 16bps to close at 20.53% w/w.
- Trading activity in the Eurobond market was muted, as average yields slowed by 1bps to close at 9.31%.
For the full Coronation fixed income and exchange rate (CFEX) update, please click here
