News Africa

Nigerian Treasury bills trade cold as rates slump

Though the market remains liquidity, funding rates were steadied ahead of potential cash reserve requirements debited by the apex bank.

In its market brief, analysts at Cordros Capital told its clients that the overnight lending rate was unchanged at 12.3%, and added that the system liquidity closed in a net long position of N162.63 billion.

Market analysts at Cowry Asset Management reported that the Nigerian Interbank offered rate (NIBOR) increased across the board for all maturities tracked as gauges of money market stress tightened and banks with liquidity demanded higher rates.

Short-term benchmark rates: the open repo rate moderated to 25 basis points to 11.50%, while the overnight lending rate, remained unchanged at 12.25%.

In the secondary market, trading activities on the Nigerian Treasury bill were relatively quiet. Market participant apathy was more pronounced as spot rates continue to decline.

Local banks held to their investment securities holdings, and instead pitched their tents at the Central Bank of Nigeria (CBN) standing lending facility (SLF) to close the liquidity gap.

Also, asset/fund managers shy away from increasing their position amidst rising inflation rates, in addition to rate hikes spurred by monetary policy tightening.

Yet, return on investment across the fixed income market remained exposed to an accelerating inflation rate in the country.

 

Source: dmarketforces.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

Related Articles

Back to top button