Interbank Rates Dip as Inflows from FGN Coupon Boosts Liquidity

Interbank rates dipped in the money market as coupon payment or inflows from Federal Government of Nigeria (FGN) bonds lifted the liquidity balance in the financial system.

Analysts said FGN coupon payment totaling N28.22 billion saturated the financial system, which had plunged into negative territory. 

Money market rates have been making an uptrend due to negative liquidity balance in the financial markets, spurred by series of auctions sales by the debt authority.

Today, Nigerian interbank offered rate (NIBOR) declined across all maturities, indicating improved liquidity in the banking system, Cowry Asset Limited said in a note.

Data from the FMDQ platform confirmed that key money market rates, including the Open Repo Rate (OPR) and the Overnight Lending Rate (O/N), declined by 0.17% and 0.33%, closing at 32.19% and 32.67%, respectively.

Analysts said Nigerian Interbank Treasury Bills True Yield (NITTY) experienced mixed movement across all maturities, while the average secondary market yield on T-bills moderated by 0.04%, settling at 23.11%. #Interbank Rates Dip as Inflows from FGN Coupon Boosts Liquidity

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