Author: Julius Alagbe

Nigerian Bonds Yield Drops after Auction ‘Surprise’ The average yield on Nigerian government bonds dropped in the secondary market after the Debt Management Office’s surprise allotment at its monthly primary market auction. The local bonds traded mixed notes with muted activity at the short end and mid-sell pressure in the mid-segment, where few papers saw yields rise. At the long end, a buy bias drove notable yield drops, leaving the average yield to a marginal decline of a basis point on the day. Traders saw mixed sentiments after the outcome of the Debt Office primary auction, where the authority offered…

US 10-Year Treasury Bond Yield Falls to 4.36% The yield on the 10-year US Treasury note fell to 4.36% on Tuesday as markets assessed the outlook on government borrowing against an uncertain macroeconomic backdrop. According to market updates, demand for US government debt remains robust after a couple of fresh U.S. data reports, keeping Treasury yields down. The bond rally is partly supported by a sequence of trade deals closed with Japan and the European Union, fueling optimism that strengthened the dollar. Primary dealers for Treasuries expect the US to refrain from increasing auction sizes for the incoming third quarter,…

Fitch Affirms Oyo State at ‘B’ with Stable Rating Outlook Fitch Ratings has affirmed Oyo government’s ability to honour the state’s financial obligations on a timely basis at ‘B’ with stable outlooks. The ‘B’ rating indicates that material default risk is present, but a limited margin of safety remains. According to Fitch, the affirmation of Oyo State’s ratings reflects its continued dependence on revenue transfers from the federal government of Nigeria despite improving internally generated revenue (IGR). It also reflects Oyo’s manageable debt, with some foreign-currency exposure. The Long-Term IDR is derived from the state’s Standalone Credit Profile (SCP) which…

Excess Liquidity in Banking System Keep Rates Lower The short-term benchmark interest rates declined in the money market due to excess liquidity level in the banking system. The liquidity balance in the financial system opened stronger, rising by ₦648.7 billion to ₦1.99 trillion on Monday amidst Central Bank of Nigeria (CBN) open market operations. In a note, analysts at AIICO Capital Limited said the strong liquidity conditions in the money market was supported by increased inflows from the Standard Lending and Deposit facilities. Despite the liquidity boost, interbank rates showed mixed movement. The Overnight Policy Rate (OPR) closed flat at…

Naira Steady after CBN Intervention, FX Reserves Hit $38.765bn The naira steadied at N1534 per US dollar at the Nigerian Foreign Exchange Market (NFEM) on Monday following the latest FX interventions of $81 million by the Central Bank.  According to the Apex Bank FX update on Monday, the local currency settled at N1534.20 per dollar at the official window, from N1534.71 at the close of the trading session on Friday. The naira spot rate touched intraday high of N1535.50 per dollar, and some deals were consummated at the intraday low of N1532… Eventually, the official spot rate closed at N1535,…

CBN Raises N1.5trn from OMO Bills at Interest Rate of 23.87% The Central Bank of Nigeria (CBN) raised N1.5 trillion from its open market operations on Monday, where the authority made a N600 billion OMO bill offer size to deposit money banks and foreign portfolio investors. On Monday, the monetary authority conducted a primary market auction and offered to sell OMO bills worth N600 billion to mop up excess liquidity of N1.35 trillion in the financial system. The OMO bills offered to investors were split across the 113-day and 204-day papers. Analysts reported that demand was heavily concentrated in the…

Lassa Fever Kills 152 in Nigeria, NCDC Says The Nigeria Centre for Disease Control and Prevention (NCDC) has reported a total of 152 deaths from Lassa fever in the first 28 weeks of 2025. This marks a higher case fatality rate (CFR) of 18.7 per cent compared to 17.3 per cent within the same period in 2024. According to the latest situation report released by the NCDC on Monday via its official website, 811 confirmed cases and over 6,520 suspected infections have been recorded so far. The Public Health agency said that these span 21 states and 105 local government…

OMO Bills Yield Climbs to 24.70%, CBN Opens Auction Nigerian open market operation bills climbed slightly in the secondary market to 24.70% as banks and foreign portfolio investors continue to increase holdings. OMO bills experienced firm buying interest, particularly at the short and long ends, where yields declined by 31 basis points (bps) to 25.53% and 25bps to 23.49% per annum, Coronation Research said in an update on Monday. Fixed income market analysts said the medium segment saw a 30bps contraction to 24.64%, resulting in a marginal 1bp uptick in average OMO yield to 24.70% from 24.69% the previous week.…

CBN Intervenes in FX Market as Dollar Inflow Falls by 25% The Central Bank of Nigeria (CBN) defended the local currency against the dominant US dollar as forex supply declined by 25% week on week. To maintain naira stability, the CBN sold about 81 million dollars to banks and other authorised FX dealers at the official window last week. Demand for dollars had surged above the available FX supply in the absence of an open market operations. In the forex market, total dollar inflows declined to US$979.10 million from US$1.31 billion in the prior week, Coronation Research said in its…

Ecobank, Access Holdings Drive Intraday Rally on NGX Ecobank, Access Holdings, and Unilever Nigeria Plc are among the early gainers driving an intraday rally in the equity market on Monday. The Nigerian Exchange (NGX) continues to reach new heights with investors taking positions amidst earnings releases. The local bourse expanded above N85 trillion as investors risk appetite continues to increase following a shift in the yield curve at the fixed income market. At midday, the NGX All-Share Index rose by 0.40%, Alpha Morgan told investors in an emailed note, indicating positive market sentiment. Stockbrokers reported that the upward movement was…