Money Market

System liquidity deteriorated today following the net NTB auction settlement of ₦252.17 billion today. As a result, interbank rates remained elevated. Specifically, the Overnight Policy Rate (OPR) and the Overnight Rate (O/N) settled at 32.18% and 32.71%, respectively.

Outlook: We expect interbank rates to remain elevated in the absence of a significant increase in inflows.

Treasury Bills

The Treasury bills market experienced increased activity, although it was largely bearish. Interest was primarily directed toward the newly issued one-year NTB paper (11 Dec 2025). There were more offers than bids, as players sought to trade their winnings profitably. Overall, the average mid-rate for the benchmark NTB papers increased by 29 bps, settling at 23.42%.

Outlook: We expect the market to trade mixed sentiments tomorrow.

FGN Bonds

The local bonds market traded calmly as participants remained cautious ahead of Monday’s FGN bond auction. Overall, the average mid-yield closed at 19.44%.

Outlook: We expect the same sentiment to persist.

Eurobonds

The Eurobond market experienced a shift towards risk aversion, leading to a negative close as investors steered clear of high-risk assets. Additionally, some investors engaged in profit-taking activities. Furthermore, the U.S. Bureau of Labor Statistics announced today that the Producer Price Index for final demand rose by 0.4% in November, seasonally adjusted. Prices for final demand increased by 0.3 percent in October and by 0.2 percent in September. Overall, the average mid-yield for Nigerian bonds rose by 5 bps, ending the day at 9.29%.

Outlook: We anticipate that participants will adopt a cautious approach leading up to next week’s FOMC meeting.

Nigerian Equities

The Nigerian bourse sustained its bullish run, with the NGX-ASI and market capitalization increasing by 25 bps to close at 98,760.59 points and ₦59.86 trillion, respectively. The positive performance was fueled by gains in shares of CONOIL (+10.00%), WAPCO (+6.06%), and OANDO (+3.73%). Year-to-date, the ASI has grown by 32.08%. Most of the sectors closed positive, with only the Banking Index dipping by 0.22%.

Outlook: We expect mixed sentiments tomorrow.

Foreign Exchange

The Nigerian Foreign Exchange Market (NFEM) experienced some activity today with improved liquidity. Transactions ranged between $/₦1,515.00 and $/₦1,550.00. Overall, the Naira appreciated by 0.84% to close at $/₦1,532.00

Outlook: We anticipate that the Naira will continue to trade within a similar range.

Commodities

Oil prices declined as projections for sufficient supply in the oil market countered the optimism brought on by increasing hopes of a U.S. interest rate reduction. Brent crude was about $72.65 per barrel, while WTI was approximately $69.30. Likewise, Gold fell by over 1% as investors took profits after it had briefly reached a five-week high earlier in the day and adjusted positions ahead of a Federal Reserve meeting scheduled for next week. Gold traded around $2,680.60 per ounce.

Outlook: We anticipate that geopolitical and macroeconomic factors will continue influencing market sentiment.