Interbank Rates Mixed as Liquidity Surplus Reduced
With a slide in liquidity surplus, interbank rates moved in divergent directions in the money market. Investment firms said in separate notes that financial system liquidity opened the new week at a robust yet moderate level of ₦2.03 trillion.
The funding level in the system was supported by a coupon inflow of about ₦29.18 billion from the FGN 2033 Sukuk Bond. The liquidity situation was also enhanced by banks’ active placements at the Central Bank of Nigeria (CBN) Standing Deposit Facility (SDF).
Banks are placing funds at the window at 24.5% SDF rate, as the post-interest rate cut reduced yields on Nigerian Treasury bills across standard tenors.
The overnight rates were unchanged at 24.86% following the previous week’s money market auctions and maturities. However, medium-term rates declined, with 1-month, 3-month, and 6-month tenors falling 10 bps, 18 bps, and 25 bps, respectively.
Money market funding costs were mixed—the overnight rate dropped 7 bps to 24.90%, while the Open Purchase Rate held at 24.85%.
The Treasury Bills secondary market saw yields climb across all tenors on Monday, with 1-month, 3-month, 6-month, and 12-month rates rising 12 bps, 28 bps, 0.5 bps, and 5 bps, respectively, Cowry Asset Limited reported.
Nonetheless, the average NT-Bills yield edged down 1 bp to 17.39%, reflecting sustained bullish sentiment and strong investor demand in the secondary market.
Amidst the expected inflow of ₦481.33 billion from OMO maturity, analysts said they anticipate moderation in the funding cost, barring any mop-up activity. # Interbank Rates Mixed as Liquidity Surplus Reduced Transcorp Power Hits All-Time High as Q3 Earnings Renew Investors Confidence
