Rates Mix as Inflows to States Boost Liquidity to N2.87trn
The short-term benchmark interest rates closed on a mixed note after the Central Bank of Nigeria (CBN) statutory payments to states lifted the liquidity level in the financial system.
The interbank market maintained strong liquidity following additional CBN inflows to states, keeping rates stable at 26.5%.
Data releases by AIICO Capital Limited highlighted that the market saw an inflows of N410 billion, which lifted liquidity to N2.866 trillion from N2.456 trillion the previous day,
Banks continue to place funds at the CBN Standing Deposit Facility in the absence of significant funding pressures with no activity at the borrowing window.
Nigerian Interbank Borrowing Rate (NIBOR) recorded a mixed outing on Wednesday, with the Overnight rate rising marginally by 6 basis points to 26.92%, Cowry Asset Limited reported.
Money market rates also closed in a mix, with the Open Repo Rate (OPR) unchanged at 26.50%, while the Overnight rate fell by 4bps to close at 26.88%.
Correspondingly, the Nigerian Interbank Treasury Bills True Yield varied across maturities, with yields on the 1-month and 6-month tenors increasing by 5bps and 15bps, respectively, while the 3-month, and 12-month tenors saw a decline of 7bps and 20bps, respectively.
The average yield for NT-Bills fell by 3bps to close at 18.43%, as investors maintain strong and positive sentiment in the secondary market. #Rates Mix as Inflows to States Boost Liquidity to N2.87trn UAC Nigeria’s Crystallised Shares: What Investors Should Know
