Money market rates moved in mixed directions on Thursday as the ₦598.33 billion outflow for the Nigerian Treasury Bills (NTB) auction settlement shook liquidity in the financial system.
Despite the sizable outflow, interbank market liquidity remained in surplus, with local deposit money banks staying absent from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF). Analysts noted that the funds sterilized at the Standing Deposit Facility (SDF) floor rate were sufficient to keep the market functioning, as there was no significant funding demand.
The Nigerian Interbank Offered Rate (NIBOR) rose across all tenors, reflecting the current liquidity tightness in the banking system. Meanwhile, key money market indicators were mixed: the Open Repo (OPR) rate held steady at 26.50%, while the Overnight Lending Rate (ONLR) rose by 0.05% to 27.00%.
In the Treasury Bills market, the Nigerian Interbank Treasury Bills True Yield (NITTY) curve moved higher across all maturities, resulting in an average yield decline of 3 basis points to 20.88%.
Analysts expect that barring any significant liquidity disruptions, interbank rates will likely remain at current levels in Friday’s session.
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