May 26, 2025/Coronation Research
Summary
- Last week, system liquidity closed in the positive at N432bn (23rd May ’25) from N424bn in the previous week, increasing by 1.88% w/w. The Open Repo Rate (OPR) declined for the first time in four weeks by 8bps to 26.42% from 26.50 % while Overnight Rates (O/N) decreased by 4bps to close at 26.92%.
- In the secondary market for Nigerian Treasury Bills (NTB), average yields eased by 5bps to close at 20.79% w/w. The short end of the curve saw a decrease of 2bps to close at 18.13%, while the medium and long ends of the curve increased by 9bps to 19.73% and 4bps to 22.78% respectively.
- At the Open Market Operation (OMO), bullish sentiment was sustained across the curve as average yields decreased by 38bps, closing at 26.51% w/w. The short, medium, and long segments yield decreased by 20bps, closing at 27.59%, 44bps closing at 26.35%, and 39bps, closing at 26.37% separately.
- In the secondary market for Federal Government of Nigeria (FGN) bonds, the average yield decreased by 3bps across the curve to close at 18.99% w/w. The short and medium ends of the curve decreased by 6bps to close at 19.01%, 2bps to close at 19.01%, but the long end of the curve closed flat at 17.40% for the second consecutive week in a row.
- Trading activity in the Eurobond market continued to be bullish as average yields decreased by 2bps to close at 9.76%.
