Interbank rates to move lower amid financial liquidity ease

THERE are expectations that interbank rates would move lower amid financial liquidity ease as treasury bills worth N91.00 billion mature via Open Market Operation (OMO).

Similarly, in the new week, the Debt Management Office (DMO) will auction N150 billion worth of local bonds, viz: N50 billion (a piece) for the 13.98 per cent Federal Government of Nigeria (FGN) February 2028, 12.40 per cent FGN March 2036 and 12.98 per cent FGN March 2050 Re-Openings.

Hence, “we expect the stop rates to moderate – mirroring the drop in the money market rate for 364-day bill – amid anticipated firm demand,” dealers said.

Dealers said they expect activity this week to be dictated by the market liquidity situation.

The Central Bank of Nigeria (CBN) sold N156.31 billion worth of notes against N51.48 billion offered at its treasury bills auction last week.

The 91-day, 182-day and 364-day notes were allotted at 2.50 per cent, 3.50 per cent, and 7.35 per cent, respectively.

Compared to the previous auction, rates on the 91-day and 182-day were unchanged while the 364-day paper fell by 85 basis points (bps).

The bulls continued their dominance in the FGN bond market last week as positive sentiment was seen across the board.

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