Money Market Rates Mixed as Liquidity Stays Strong
In the money market, the short-term benchmark interest rates movement remained in check due to robust liquidity in the financial system. Demand for funding eased following buckets of inflows that lifted system liquidity in April.
The banking system closed in surplus again in the absence of significant funding demand. Local deposit money banks are taking their free cash to the Central Bank to earn floored interest rates.
The Apex Bank Standing Deposit Facility (SDF) window attracted ₦4.93 trillion last week, and analysts are projecting that excess liquidity will keep the trend ongoing.
Meanwhile, key money market indicators were mixed, with the Open Repo Rate remaining steady at 26.50%, while the Overnight Lending Rate rose by 0.13% to 26.96%.
The interbank market remained liquid with over ₦1.2 trillion in surplus, supporting rate stability around 26.5%, according to separate market updates released by investment banking firms.
OMO inflow of ₦239.15 billion is expected to bolster liquidity, supporting current rate levels unless unexpected pressures emerge. Last week, system liquidity still closed in the positive at N1.25 trillion, from N1.78 trillion in the previous week, decreasing by 30.07% week on week.
Hence, the Open Repo Rate (OPR) remained flat at 26.50%, while Overnight Rates (O/N) edged lower by 5 bps to close at 26.83%. #Money Market Rates Mixed as Liquidity Stays Strong CUTIX Gains 30% on Earnings Forecasts, Unusual Trade Volume
