Surplus Liquidity Keeps Money Market Rates Steady
The short-term benchmark interest rates were steadied in the money market as excess liquidity levels climbed near N5 trillion in the absence of Central Bank action.
Surplus liquidity continues to keep rate movement in check. The excess funds in the market continue to enhance the banks’ placement at the Apex Bank deposit window.
The market liquidity opened the day with a surplus balance of ₦4.8 trillion, reflecting a marginal increase of ₦14.8 billion from the previous level.
The improvement was mainly driven by an increase in the CBN standing deposit facility (SDF) window, which settled at ₦4.6 trillion. The market also recorded an inflow of ₦193.4 million bond coupon, boosting the liquidity level in the financial system.
Money market funding costs held steady, with both the overnight lending rate and open purchase rate remaining at 24.86% and 24.50%, respectively.
The market anticipates funding cost to remain at similar level, barring any funding activity. # Interbank Rates Steady as Excess Liquidity in Nears N5trn US Treasury to Offer $125bn Securities to Refund Privately Held Notes
