April 29, 2025/Coronation Report

Summary

• Last week, system liquidity closed in the positive at N1.78tn (25^th April, ’25) from N103.01bn in the previous week, increasing by significantly w/w. The Open Repo Rate (OPR) and Overnight Rates (O/N) decreased by 510bps to close at 26.50%, and 517.5bps to close at 26.88% respectively. We expect interbank rates to remain elevated barring any significant inflows.
• Average yields in the Nigerian Treasury Bills (NTB) edged lower by 7bps to close at 20.83% w/w. The short end of the curve decreased by 12bps to close at 18.21%, the medium and long segments of the curve increased by 8bps to close at 19.57%, and 2bps to close at 22.91% respectively.
• In the secondary market for Open Market Operation (OMO), bullish sentiment was sustained across the curve. Average yields decreased by 109bps closing at 27.13% w/w. The short segment’s yield decreased by 217bps closing at 28.00%. The medium and long segment’s yields also edged lower by 131bps closing at 27.46% and 57bps closing at 26.65% w/w respectively.
• In the secondary market for Federal Government of Nigeria (FGN) bonds, the average yields increased by 1bps across the benchmark curve to close at 19.01% w/w. The short end of the curve witnessed rise in yields, 6bps to close at 19.61%, the medium and long ends of the curve decreased by 9bps to close at 19.28% and 16bps to close at 17.45% respectively.
• During the week, the DMO offered Treasury Bills worth N400bn across the 90-day, 182-day, and 364-day tenors. Investor interest improved significantly, with total subscriptions rising to N1.54tn. Total allotments stood at N714.38bn, with 91.03% allocated to the 364-day bill. Stop rates declined across the board as the 90-day, 182-day, and 364-day bills closed at 18.00%, 18.50%, and 19.60%, respectively, down by 50bps, 100bps, and 63bps.
• At the first OMO auction for the month, the CBN offered N500bn, attracting total subscriptions of N1tn.The stop rates were set at 22.37% for the 298-day, and 22.73% for the 319-day instruments, implying an annual yield of 28.36%.
• Trading activity in the Eurobond market was bullish as average yields decreased by 53bps to close at 10.05%.
• Bonny light continued its downward trend last week to US$/bbl69.22 losing 2.01% because of weak demand and global uncertainties over the tariff war.