April 8, 2025/Coronation Research

Summary

• Last week, system liquidity still closed positively at N969.64bn (4th April, ’25) from N969.77bn in the previous week. Consequently, the Open Repo Rate (OPR) remained unchanged at 26.50%, while the Overnight Rate (O/N) decreased by 10bps to close at 26.86%. We expect interbank rates to remain elevated barring any significant inflows.
• Average yields in the Nigerian Treasury Bills (NTB) increased by 43bps to close at 19.86% w/w. The short end of the curve declined by 22bps to close at 18.06%, the medium segment of the curve increased by 58bps to close at 19.32%, and the long end of the curve increased by 47bps to close at 21.12%.
• In the secondary market for Open Market Operation (OMO), average yields increased by 16bps closing at 24.36% w/w. The short segment yield declined by 2bps closing at 26.32%. The medium segment yield increased by 29bps closing at 23.30%, and the long segment yield increased by 24bps closing at 23.99% w/w.
• In the secondary market for Federal Government of Nigeria (FGN) bonds, the average yields remained unchanged across the benchmark curve to close at 18.71% w/w. In the short end of the curve, there was a decline of 2bps to close at 19.04%, while the mid-point and long end of the yield curve remained at 19.08%., and 17.64% respectively.
• Trading activity in the Eurobond market was bearish as average yields increased by 130bps to close at 10.94%.
• Bonny Light decreased by 4.72% from US$75.90/bbl to US$72.32/bbl. UK Brent decreased by 10.93% from US$73.63/bbl to US$65.58/bbl and, WTI also decreased by 10.63%w/w from US$69.36/bbl to US$61.99bbl.
• US President Donald Trump unveiled numerous new tariffs on a country-by-country basis last week, targeting all trading partners of the US with a minimum 10% tariff and much higher rates for countries that the US accused of placing high tariffs or non-monetary trade barriers on US imports to their countries. This heightened fears that a trade war leading to a global recession could be the result.

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