Interbank rates showed mixed movements on Monday as money market liquidity remained robust, closing at ₦6.12 trillion following an Open Market Operation (OMO) by the Central Bank of Nigeria (CBN).
The financial system sustained a liquidity surplus, with commercial banks’ deposits with the CBN rising by ₦204.69 billion to ₦5.53 trillion. Despite the abundance of funds, short-term benchmark interest rates were uneven, reflecting stable funding conditions. To manage the excess liquidity, the CBN conducted an OMO auction worth ₦600 billion.
At the auction, the apex bank offered ₦600 billion across 85-day, 99-day, and 120-day bills. The sale attracted robust investor demand, with total subscriptions amounting to ₦4.1 trillion. Ultimately, the CBN allotted ₦998.1 billion, clearing at an average stop rate of 20.1%.
According to data from FMDQ, the Open Repo Rate (OPR) held steady at 24.50%, while the Overnight Rate (OVN) dipped slightly by 1 basis point to 24.88%.
Analysts at AIICO Capital Limited noted that interbank rates are likely to moderate further in the coming days amid an expected inflow of ₦905.23 billion in OMO maturities and the absence of significant funding activity.
In the Treasury Bills secondary market, performance was mixed as yields on short- and medium-term maturities declined — with 1-month, 3-month, and 6-month NITTY yields falling 10 bps, 24 bps, and 6 bps, respectively — while the 12-month yield advanced by 14 bps.
Overall, the average Nigerian Treasury Bills yield dropped by 13 bps to 17.80%, reflecting sustained bullish sentiment among investors.
Last week, system liquidity improved to ₦5.73 trillion from ₦4.02 trillion, buoyed by inflows from ₦905.23 billion in OMO maturities, which offset outflows from FGN bond and OMO allotments totaling ₦576.63 billion and ₦98.00 billion, respectively.
Consequently, interbank rates closed the week largely stable, with the OPR and OVN settling at 24.50% and 24.89%, respectively.
