FMDA’s Weekly Market Report March 16, 2026

Weekly Market Insights: Global Trends and Local Implications

• Average net system liquidity continued to increase as inflows trickled in, while withdrawals through OMO auctions remained relatively slow.
• Liquidity inflows are expected to moderate this week, with about N1.35 trillion projected from maturities, barring additional injections such as CRR refunds.
• Although the Iran conflict triggered outflows from emerging market assets globally, Nigeria recorded modest portfolio inflows as investors sought higher-yielding opportunities, helping the naira recover slightly during the week.
• Yields in the bond market edged higher during the week, consistent with broader movements across global fixed-income markets amid rising inflation expectations linked to tensions between the US and Iran.
• Yields in the secondary market edged higher during the week, reflecting cautious investor positioning amid evolving global developments.
• The uptick in domestic bond yields broadly mirrored movements in global fixed income markets, where yields also climbed as geopolitical tensions surrounding the Iran conflict raised concerns about inflation and energy price pressures.
• Locally, the modest increase in yields across most maturities suggests mild profit taking and portfolio rebalancing by investors following the recent rally in fixed income securities.

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