May 12, 2025/Coronation Report
Summary
- Last week, system liquidity still closed in the positive at N685bn (9th May ’25) from N1.25tn in the previous week, decreasing by 45.13% w/w. The Open Repo Rate (OPR) remained flat at 26.50% for the second consecutive week, while Overnight Rates (O/N) edged higher by 12bps to close at 26.95%.
- In the secondary market for the Nigerian Treasury Bills (NTB), average yields eased by 10bps to close at 20.97% w/w. The short and long ends of the curve also saw a decrease of 7bps to close at 18.83%, and 11bps to close at 22.79% respectively. Meanwhile the medium segment of the curve saw an increase of 14bps to close at 19.70%.
- At the primary market, the DMO offered N550bn in NTBs up from N400bn at the previous auction. Investor demand moderated, with total subscriptions declining to N1.09tn from N1.54tn. Total allotment settled at N598.33bn, down from N714.38bn. While stop rates on the 91- and 182-day tenors remained steady at 18.00% and 18.50% p.a, the stop rate on the 364-day bill rose by 3bps to 19.63% p.a.
- At the Open Market Operation (OMO), average yields decreased by 15bps closing at 26.85% w/w. The short segment’s yield increased by 7bps closing at 27.85%. The medium and long segment’s yields edged lower by 37bps closing at 26.93%, and 15bps closing at 26.46% w/w respectively.
- At the OMO auction, CBN offered N500bn across the 315 day and 329-day maturities. Although investor appetite remained firm, demand eased relative to the prior auction, with total subscriptions of N773.74bn versus N1.06tn. Total allotment was N756.74bn, out of which 94.67% was allocated to the 329-day bill. Stop rates on the 315 day and 329-day bills declined marginally by 4bps and 1bp to 22.65% and 22.72% respectively.
- In the secondary market for Federal Government of Nigeria (FGN) bonds, the average yield increased by 2bps across the curve to close at 19.07% w/w. The short end of the curve also witnessed a small rise in yields by 6bps to close at 19.80%, but the medium and long ends of the curve decreased by 2bps to close at 19.09% and 1bp to close at 17.44% respectively.
- Trading activity in the Eurobond market was bullish as average yields decreased by 24bps close at 10.39%.
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