Interbank rates fell in the money market as coupon payments or inflows from Federal Government of Nigeria (FGN) bonds increased liquidity in the banking system.
Analysts claimed the FGN coupon payment of N28.22 billion overloaded the financial system, which had fallen into negative territory.
Money market rates have been rising due to a negative liquidity balance in the financial markets, fueled by a series of auction sales by the debt authority.
Cowry Asset Limited said today that the Nigerian interbank offered rate (NIBOR) fell across all maturities, indicating better liquidity in the banking sector.
Data from the FMDQ website revealed that major money market rates, including the Open Repo Rate (OPR) and the Overnight Lending Rate (O/N), decreased by 0.17% and 0.33%, respectively, to close 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%.
