April 22, 2025/Coronation Research

Summary

• Last week, system liquidity closed in the negative at N103.01bn (17^th April, ’25) from N303.04bn in the previous week, declining by 133.99% w/w. The Open Repo Rate (OPR) and Overnight Rates (O/N) edged higher by 502bps to close at 31.60%, and 509bps to close at 32.05% respectively. We expect interbank rates to remain elevated barring any significant inflows.
• Average yields in the Nigerian Treasury Bills (NTB) edged lower by 15bps to close at 20.90% w/w. The short end of the curve decreased by 21bps to close at 18.34%, the medium segment of the curve decreased by 27bps to close at 19.49%, and the long end of the curve increased by 6bps to close at 22.89%.
• In the secondary market for Open Market Operation (OMO), average yields decreased by 107bps closing at 28.22% w/w. The short segment’s yield decreased by 27bps closing at 30.17%. The medium segment’s yield decreased by 14bps closing at 28.76%, and the long segment’s yield decreased by 180bps closing at 27.22% 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 bullish as average yields decreased by 113bps to close at 10.58%.

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