Money Market Rates Rise as NTB Outflow Drags Liquidity
Money market rates climbed again following decline in system liquidity after payment for Nigerian Treasury bills (NTB) primary market auction sold to investors.
According to data from FMDQ Exchange, the open repo and overnight lending rates increased moderately with banks taking accessing funds from the Central Bank of Nigeria (CBN) Standing Lending Facility to augment their funding gap.
The opening system liquidity declined by 5.63% to ₦535.58 billion On Thursday, according to AIICO Capital Limited, from ₦567.50 billion recorded in the prior day.
Overall, the Open Repo Rate (OPR) remained unchanged at 23.68%, while the Overnight Rate (O/N) increased by 4 bps to 24.18%.
The money market witnessed N55.55 billion outflow the net Treasury bills bids by investors at the midweek primary market auction conducted by the CBN.
The Nigerian interbank offered rate increased by 0.10% to reach 23.73% as the primary market sales from the Nigerian Treasury bills constrained system liquidity.
Overall, key money market rates such as the Open Repo Rate (OPR) and Overnight Lending Rate (OVN) surged to 23.68% and 24.18%, respectively.
Meanwhile, Nigerian Treasury true yield rates closed in the mixed bag, even as the average T-bills yield decreased by a base point to close at 19.74%. #Money Market Rates Rise as NTB Outflow Drags Liquidity
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