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    Liquidity: Bonds Payment Stokes Pressure on Interbank Rates

    Julius AlagbeBy Updated:No Comments1 Min Read
    Liquidity Bonds Payment Stokes Pressure on Interbank Rates

    Liquidity: Bonds Payment Stokes Pressure on Interbank Rates

    Interbank rates rose as Nigerian bonds auction settlement dragged liquidity in the financial system. The money market experience huge outflow relating to settlement of bonds auction sales by the Debt Office on Monday.

    FGN bond auction settlement of approximately N910.30 billion dragged liquidity level lower on Wednesday as market anticipates inflows from FAAC disbursement.

    Hence, the Nigerian Interbank Offered Rate (NIBOR) trended upward across all tenors, indicating tight liquidity conditions in the banking system.

    Similarly, key money market indicators showed an upward movement, with the open repo rate (OPR) increasing by 1.71% to 31.71% and the overnight lending rate increasing by 1.64% to 32.21%.

    At the close of the trading session in the financial market, banking system liquidity fell into a deficit position of ₦840.39 billion due to a huge outflow relating to the bond auction.

    Last week, system liquidity closed negative at -N722 billion from -N3.10 trillion in the previous week. This kept money market rates elevated at double-digit highs. #Liquidity: Bonds Payment Stokes Pressure on Interbank Rates#

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    Julius Alagbe is a senior financial journalist and Editor at MarketForces Africa with nearly two decades of experience in finance, accounting, and economics reporting.He is one of Nigeria's most prolific financial market reporters, covering capital markets, monetary policy, corporate earnings, banking, telecoms, and macroeconomic developments across Africa.Julius has built a strong footprint reporting on Nigeria's leading corporates and financial services sector, including coverage of the Nigerian Exchange Group, Central Bank of Nigeria monetary operations, MTN Nigeria, GTCO, and major investment banking transactions.He regularly monitors the CBN’s open market operations, interbank FX markets, and equity market movements, providing readers with real-time intelligence on Nigeria’s financial landscape.His reporting draws on direct access to institutional research from firms including Moody’s Ratings, CardinalStone Securities, Fitch, and other leading African investment houses.Julius brings analytical depth and editorial rigour to every story, making complex financial data accessible to professionals, investors, and policymakers across Africa.Julius Alagbe is based in Lagos, Nigeria.

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