• Thursday, May 30, 2024
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BusinessDay

Inter-bank rate to moderate on N240.12bn Treasury Bills maturity

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Money market this week is expected to experience moderation following maturing treasury bills worth N240.12 billion that will hit the financial system, Cowry Asset report has indicated.

The market on Friday experienced liquidity squeeze as the Nigeria Inter-Bank Offer Rates (NIBOR) increased across tenor buckets.

For instance, midnight call increased to 13.04 percent from 10.66 percent, the previous day. 7 days and 30 days tenor climbed to 13.12 percent and 13.41 percent from 11.04 percent and 11.33 percent, respectively, the previous day.

Analysts attributed the increase in NIBOR to staggered auctions of financial instruments intended to mop up anticipated boost in system liquidity.

In addition to withdrawals for foreign exchange market and OTC bonds transactions, the Central Bank of Nigeria (CBN) sold treasury bills worth N222.88 billion (viz: 227-day bills worth N26.57 billion; 226-day bills worth N132.80 billion; and 230-day bills worth N63.51 billion) via Open Market Operations on Tuesday, Thursday and Friday, Cowry Assets weekly report revealed.

HOPE MOSES-ASHIKE