Weekly Market Insights: Global Trends and Local Implications
- System liquidity surged to a record N7.56 trillion as the CBN appears to have scaled back OMO auction activity.
- The moderation in OMO activity may reflect an effort to manage sterilisation costs, as lower mop-up could reduce the interest burden on outstanding liabilities.
- All else being equal, liquidity may increase further, with about N2.31 trillion projected to flow in from maturing securities this week.
- Of the projected inflows, OMO maturities account for roughly 62%.
- Interbank rates remained broadly stable, supported by ample system liquidity.
- The naira appreciated across both the official and parallel markets, supported by rising oil prices, CBN efforts, and sustained autonomous inflows.
- Fixed income yields continued to edge higher, as inflation expectations, driven by rising oil prices, shaped investor sentiment across both local and global markets.
