June 2, 2025/Coronation Report
Summary
- Last week, system liquidity closed in the positive at N1.90trn (30th May ’25) despite increasing from N432bn in the previous week (+339.81% w/w). The Open Repo Rate (OPR) and Overnight Rates (O/N) rebounded by 8bps to 26.50% and 3bps to 26.95% respectively.
- In the secondary market for Nigerian Treasury Bills (NTB), average yields were up by 4bps to close at 20.74% w/w. The short, medium and long ends of the curve saw a decrease of 7bps to close at 18.06%, 14bps to close at 19.59%, and 2bps to close at 22.59% separately.
- At the Open Market Operation (OMO) market, the average yields decreased by 80bps, closing at 25.70% w/w. The short and long segments yield decreased significantly, by 203bps closing at 25.55% and 99bps closing at 25.38% apiece, while the medium segment increased by 31bps, closing at 26.66%.
- At the OMO auction last week, the CBN offered N600bn across the 104-Day and 139-Day tenors, and there was an oversubscription of N87.13bn signaling sustained interest by investors. Total sale across both tenors was N482bn. Stop rates were 23.60% and 24.98% respectively. For the 106-Day and 169-Day tenors, the CBN also offered N600bn, and there was an over subscription of N546.2bn. Total sale across both tenors was N1.12trn. Stop rates were 23.59% and 24.50% respectively.
- In the secondary market for Federal Government of Nigeria (FGN) bonds, the average yield decreased by 15bps across the curve to close at 18.84% w/w. The short and medium ends of the curve decreased by 26bps to close at 19.26%, 10bps to close at 18.91%, and the long end of the curve decreased for the first time in three weeks by 1bp to 17.38%.
- Average yields in the Eurobond market decreased by 21bps to close at 9.56%.
