Money Market Rates Mixed as Banking System Liquidity Dips
The money market rates closed on a mixed note as banking system liquidity eased following a fast-and-furious mop-up via OMO sales last week.
System liquidity tightened slightly, with opening liquidity declining to ₦4.70 trillion from ₦4.79 trillion the previous week. This shift was reflected in a mildly bearish tone in the interbank market.
Data from the FMDQ platform showed the Open Repo Rate (OPR) remained steady at 22.00%, while the Overnight (O/N) rate inched higher by 6bps to 22.16%, compared to 22.10% in the prior week.
The Central Bank was aggressive with liquidity mop-up, raising N3.83 trillion across open market operations from highly liquid deposit money banks and foreign investors.
To keep the funding profile tight, the monetary authority has also increased the size of its treasury bills auction by 122% to N1 trillion.
In a circular obtained from the market, the CBN revised its Q2 Nigerian Treasury bills calendar, with the 17th June 2026 auction size adjusted upward to N1 trillion from N450 billion.
Analysts said this is likely aimed at further reducing system liquidity, though the N206.85 billion in maturities due on 18th June 2026 should provide a partial offset.
With Wednesday’s auction in focus, fixed income market analysts expect a cautious tone to prevail across the market in the near term. Last week, Nigeria’s fixed income market recorded a slight uptick in yields, reflecting weaker sentiment in the bills segment.
Treasury bill yields edged up to 17.85% from 17.67%, while OMO bills rose to 20.78% from 20.61%. The movement suggests investors are demanding higher compensation for short-term instruments in a more cautious market environment. Money Market Liquidity Tops N6trn Ahead of OMO Inflow
