Inter-bank rates moderate on FG bond maturity

Nigerian Interbank Offered Rates (NIBOR) moderated for most tenor buckets as pressure on system liquidity eased, Cowry Research Market Insight has indicated.

NIBOR for 30 days, 60 days and 90 days softened to 11.33 percent, 11.63 percent, and 11.83 percent respectively. However, NIBOR for call increased to 10.79 percent while Open Buy Back rate rose to 10.50 percent.

The development, analysts believe is as a result of federal government’s bond maturity and matured treasury bills.

According to daily market updates by analysts from Ecobank, the inter-bank rate rose 34bps to10.58 percent on March 11, 2013 reflecting the Central Bank of Nigeria (CBN)’s effective/aggressive liquidity management efforts. Call/overnight and 7-day money market rates rose slightly to 10.58 percent and 10.95 percent respectively on March 11. The three months NIBOR rose to 12.0 percent, though less activities are done on the tenor.

The interbank secured lending (Open Buy Back) also rose to 10.37 percent for deposit money banks DMBs and 10.25 percent for discount houses (DHs) on March 11, 2013.