March 18, 2025/Coronation Research

Summary

• Last week, system liquidity closed negative at -N956.03bn (14th March, ’25) from N130.94bn in the previous week, reflecting tight market conditions. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) trended higher to 32.40% and 32.80%, respectively from 27.08% and 27.67% in the prior week. We expect interbank rates to remain elevated barring any significant inflows.
• Average yields in the T-bills segment increased by 1bps to close at 19.17% w/w.
  The short segment of the curve declined by 6bps to close at 18.35%, the medium segment of the curve increased by 10bps to close at 18.12%, and the long segment of the curve increased by 14bps to close at 20.19%.
• In the secondary market for OMO, average yields for the OMO bills declined by
  3bps closing at 22.40% w/w.
• In the secondary market for FGN bonds, the average yields increased by 1bps across the benchmark curve to close at 18.46% w/w. In the short curve, there was a decline of 1bps to close at 18.91%, in the medium curve, there was an increase of 5bps to close at 18.59%, and for the long curve, there was no noticeable change from the previous close of 17.33%.
• Trading activity in the Eurobond market was bearish as average yields increased by 16bps to close at 9.42%.

For the full Coronation fixed income and exchange rate (CFEX) update, please click here