By Dipo Olowookere
Nigeria’s interbank lending rate declined at the first trading day of the week on Wednesday after the central bank drained Naira liquidity from the market.
Specifically, the overnight rate dropped on Wednesday to 5.75 percent from 6.33 percent recorded in the last trading session.
Similarly, the open buy back (OBB) rate depreciated to 5 percent yesterday from 5.67 percent.
Meanwhile, Business Post reports that the treasury bills market traded flat yesterday with few buys on some short and medium tenured maturities.
The Central Bank of Nigeria (CBN) offered a total of N200 billion worth of treasury bills to market players though the Open Market Operations (OMO), but only N95.89 billion worth of the bills were sold.
A breakdown of the OMO auction by the apex bank showed that the 92-day bill worth 10.10 billion was sold at 12.90 percent, while the 267-day bill worth N85.79 billion was sold to investors at 14.70 percent stop rate.
Today, market players are anticipating another CBN OMO sales and analysts predict that the money market rates will further drop.
Adedapo Adesanya