*CP Market Commentary* 23/05/2025 FX Reserves: $38.56bn NFEM Window: ₦1580.44/$ Interbank Rates: 26.92% Liquidity open: ₦431.87bn The Treasury Bills market opened quietly, with limited activity, particularly on long-tenor bills like the April 2026 OMO, quoted at 22.00%/21.80%. Sentiment shifted slightly as participants anticipated ₦1.1 trillion in OMO maturities. In response, the CBN offered ₦500 billion across 182-day and 210-day tenors in an OMO auction, attracting ₦743.25 billion in bids and allotting ₦655.25 billion. Stop rates rose sharply to 23.77% (+112bps) and 23.98% (+126bps), respectively. Mid-week, investor interest picked up, particularly in the 14 Apr OMO bill, though offers were scarce. The PMA also drew strong interest, with ₦1.17 trillion in subscriptions for ₦500 billion on offer. ₦615.8 billion was allotted, while stop rates for the 91-day and 182-day bills held at 18.00% and 18.50%, and the 364-day bill dropped 7bps to 19.56%. The week ended on an active note, as unmet demand from the PMA spurred buying interest. The newly issued 364-day bill was bid at 19.40%, with offers at 19.30%, and trades were seen on the 16 Dec OMO bill at 23.10%. Week-on-week, the average benchmark yield decreased by 9bps to close at 19.98%. The FGN bond market opened the week on a quiet note, with muted activity across the curve. The 2033 maturity was initially quoted at 20.00%, reflecting the cautious sentiment ahead of the MPC decision, where the CBN held all policy parameters unchanged. Mid-week, the market remained subdued as focus shifted to the NTB auction. Nonetheless, selective interest was seen on the short end, with trades on the 2027 maturity at 19.50% and the 2031 bond quoted at 19.90%/19.80%. The week ended on a similarly quiet note, with light trading activity. The 2033 maturity was bid at 19.95% and offered at 19.90%, consistent with the cautious tone that defined the week. Week-on-week, the average benchmark yield declined by 2bps to close at 18.59%. The Eurobond market opened the week on a bearish note, initially pressured by news of a U.S. government downgrade, which triggered a brief uptick in yields as investors reassessed risk. Sentiment was further dampened by reports that OPEC+ may increase oil production. Nonetheless, the initial selloff was short-lived and had limited market impact. Mid-week, the market rebounded slightly despite a lack of clear catalysts. U.S. macro data came in stronger than expected, with flash manufacturing and services PMIs both printing at 52.3, above forecasts, and jobless claims slightly below expectations. These supported sentiment modestly. The market opened on a bullish note later in the week, though momentum faded towards the close. Oil prices remained largely stable, with WTI settling around $61.5. Week-on-Week, the average benchmark yield decreased by 22bps to 9.54%. The local bourse ended the day with the benchmark NGX All-Share Index (ASI) declining by 14bps to close at 109,028.62. Market capitalization also decreased, closing at ₦68.52 trillion. Market breadth was positive at 1.36x. Meanwhile, trading activity was mixed on the day, as the volume of shares traded decreased by 14.37% to 637.54 million units, while the total value of shares traded declined by 0.22% to ₦18.12 billion. Reflecting the week’s performance, the NGX All-Share Index recorded a 0.62% decline, as gains in CUTIX (+21.92%), CUSTODIAN (+21.45%) and REDSTAREX (+20.90%) were offset by losses in NEIMETH (-17.03%), ABCTRANS (-15.59%), and TRANSCOHOT (-15.03%). Overall, the NGX has posted a year-to-date gain of 5.93%. Other notable indices are the NGX Top 30 Index (-0.13%; -0.50% 1WK; 5.71% YTD), NGX Banking Index (1.48%; -1.52% 1WK; 6.59% YTD), NGX Oil & Gas Index (-0.29%; 0.66% 1WK; -3.44% YTD), and NGX Insurance Index (-0.66%; 0.73% 1WK; -5.84% YTD) *CP Trading* *Comercio Partners*