THERE are expectations that the liquidity pressure in the money market will ease as there will be Open Market Operation (OMO) of N30.0 billion and Treasury Bills (NTB) worth N264.28 billion maturing this week. Hence, “We expect interest rates to moderate in the coming week despite the growing appetite for NTB by risk-averse investors,” dealers at Cowry Assets Management Limited stated in a note to clients. T-bills market was quiet in the just concluded week as there was no maturing or refinancing T-Bills which led to liquidity strain.. This was due to rising inflation, which led to an increase in the benchmark interest rate from 11.5 per cent to 13 per cent on May 24, and from 13 per cent to 14 per cent in July 2022. The development is seen as a good opportunity for investors to reduce negative real returns on their investment.

Source: Nigerian Tribune July 25, 2022 02:28 UTC