Money Market

The financial system maintained relatively stable liquidity levels, leading to a reduction in funding rates due to the lack of significant funding pressure. Consequently, both the Overnight Policy Rate (OPR) and the Overnight Rate (O/N) fell, with the OPR decreasing by 1.68% to 24.85% and the O/N dropping by 1.95% to 25.00%.

Outlook: : We expect the interbank rates to remain stable, barring any major catalyst.

Treasury Bills

The treasury bills market had a calm session with a slightly bullish undertone. Most activity centered around the March, May, and October 2025 bills. Consequently, the average mid-rate for the benchmark NTB decreased by 7 bps, closing at 21.47%. 

Outlook: We expect the same sentiment to persist tomorrow.

FGN Bonds

The local bonds market exhibited a bullish trend, with interests observed across the February 2031, May 2033, February 2034, and June 2053 bonds. Overall, the average mid-yield decreased by 6 bps, settling at 19.06%. 

Outlook: We expect a similar play tomorrow.

Eurobonds

The Eurobond market experienced a bullish trend across the African region, driven by renewed buying interest. Consequently, the average mid-yield for Nigerian bonds decreased by 7 bps, closing at 9.42%.

In other news, the US Bureau of Economic Analysis reported a slowdown in Q3 2024 GDP growth to 2.8%. Consumer spending and federal government spending rose, exports and imports increased, but private inventory investment declined.

Outlook: Tomorrow’s attention will be on US’ September PCE inflation data.

Nigerian Equities

The Nigerian stock market maintained its downward trend with mixed performance overall. The NGX-ASI dropped by 4 bps to 98,023.33 points, and market capitalization fell to ₦59.39 trillion. The decline was driven by a selloff in MTNN, which overshadowed gains in GTCO, TRANSCORP, WAPCO, and ZENITHBANK. Sector performance varied: Banking, Industrial Goods, and Oil & Gas sectors advanced, while Insurance and Consumer Goods sectors declined.

Outlook: We expect the same sentiments to persist tomorrow.

Foreign Exchange

At the NAFEM window, the Naira closed at $/₦1,631.17, experiencing a slight depreciation of 4 bps against the USD.

Outlook: We anticipate that the volatility will continue.

Commodities

Oil prices surged by over 1% following unexpected declines in U.S. crude and gasoline inventories and speculation that OPEC+ might postpone an oil output increase. Brent crude climbed to $72.40, while WTI rose to $68.43. Similarly, gold prices hit a record high of around $2,800.40 per ounce, driven by safe-haven demand amid U.S. presidential election uncertainty and anticipation of economic data influencing the Federal Reserve’s policy decisions.

Outlook: We expect this sentiment to continue.