March 25, 2025/Coronation Research

Summary

• Last week, system liquidity closed negative at -N1.96tn (21^st March, ’25) from -N956.02bn in the previous week, reflecting the tight market conditions. Consequently, the Open Repo Rate (OPR) maintained 32.40% (+0bps), while and the Overnight Rate (O/N) increased higher to 32.90%, (+10bps) from 32.80% in the prior week. We expect interbank rates to remain elevated barring any significant inflows.
• Average yields in the T-bills market increased by 12bps to close at 19.28% w/w. The short end of the curve declined by 45bps to close at 17.91%, the medium segment sustained its 18.04%, and the long end of the curve increased by 40bps to close at 20.58%. In the auction last week, the stop rate for 91-Day tenor was 18.00%, the stop rate for the 182-Day tenor was 18.50%, and the stop rate for the 364-Day tenor was 19.94%. There was an oversubscription of N102.04bn.
• In the secondary Open Market Operation (OMO) market, average yields increased by 13bps closing at 22.55% w/w.
• In the secondary market for FGN bonds, the average yields increased by 29bps across the benchmark curve to close at 18.75% w/w. In the short end of the curve, there was a decline of 34bps to close at 19.33%, in the medium segment, there was an increase of 39bps to close at 18.81%, and for the long end, there was an increase of 5bps to close at 17.51%.
• Trading activity in the Eurobond market was bearish as average yields increased by 9bps to close at 9.51%.
• The price of Bonny Light increased by 0.43% w/w to US$74.04/bbl.  The price of UK Brent also grew by 1.46% w/w to close at US$71.61/bbl. which is the biggest weekly increase since early January. The WTI also grew by 1.46%w/w to close at US$67.89/bbl.