Money Market Rates Mixed as NTB Auction Debit Shakes Liquidity

Money Market Rates Mixed as NTB Auction Debit Shakes Liquidity
Yemi Cardoso

Money market rates headed in mixed direction as outflow for Nigerian Treasury bills (NTB) shake liquidity balance in the financial system.

The interbank market liquidity faced ₦598.33 billion outflow for Nigerian Treasury bills auction settlement.  In spite of this, the interbank market liquidity remained surplus. Local deposit money banks are still absent at the central Bank of Nigeria (CBN) Standing Lending Facility (SLF) to borrow.

According to some analysts, the amount sterilised at Standing Deposit Facility earnings floor rate remained sufficient to keep the market going in the absence of significant funding demand.

On Thursday, Nigerian Interbank Offered Rate (NIBOR) rose across all tenors, reflecting the current liquidity conditions in the banking system. Meanwhile, key money market indicators were mixed: the Open Repo rate remained unchanged at 26.50%, while the Overnight Lending Rate rose by 0.05% to 27.00%.

Also, the Nigerian Interbank Treasury Bills True Yield (NITTY) curve advanced across all maturities, causing the average Treasury bills yield to decline by 3 basis points to 20.88%

Barring any major liquidity disruptions, interbank rates should maintain current levels in tomorrow’s session, analysts said in their separate updates.  #Money Market Rates Mixed as NTB Auction Debit Shakes Liquidity Equities Investors Gain N1.04trn as Nigerian Stocks Boom