April 15, 2025/Coronation Research

Summary

• Last week, system liquidity closed positive at N303.04bn (11th April, ’25) declining by 68.75% w/w, from N969.64bn in the previous week. The Open Repo Rate (OPR) and Overnight Rates (O/N) edged higher by 8.33bps to close at 26.58%, and 9.33bps to close at 26.96% respectively. We expect interbank rates to remain elevated barring any significant inflows.
• Average yields in the Nigerian Treasury Bills (NTB) increased by 119bps to close at 21.05% w/w. The short end of the curve elevated by 49bps to close at 18.54%, the medium segment of the curve increased by 58bps to close at 19.76%, and the long end of the curve increased by 183bps to close at 22.95%.
• In the auction last week, The DMO offered N800bn, and subscription was N1.13trn, indicating an oversubscription of N326bn. However, only N424.58bn worth of bids were allotted. The stop rate for the 91-Day tenor was 18.5%, 182-Day tenor was 19.5%, and 364-Day tenor was 19.63%.
• In the secondary market for Open Market Operation (OMO), average yields increased by 492bps closing at 29.28% w/w. The short segment’s yield increased by 413bps closing at 30.45%. The medium segment’s yield increased by 559bps closing at 28.89%, and the long segment’s yield increased by 503bps closing at 29.02% w/w
• In the secondary market for Federal Government of Nigeria (FGN) bonds, the average yields increased by 17bps across the benchmark curve to close at 18.87% w/w. The short and medium end of the curve witnessed a sharp rise in yields, 15bps to close at 19.19%, and 31bps to close at 19.39% w/w respectively. While the long end of the yield curve remained at 17.64%.
• Trading activity in the Eurobond market was bearish as average yields increased by 77bps to close at 11.71%.

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