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T-Bills Market Still Bearish as Yields Rise 0.05%

By Dipo Olowookere

Average yields of treasury bills on Tuesday recorded a slight increase, 0.05 percent, as the market remained bearish.

Yesterday, the Central Bank of Nigeria (CBN) continued with the sale of T-bills via the open market operations (OMO).

At the end of the exercise, a total of N87.83 billion worth of the government instrument was sold to traders at the market.

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Specifically, the apex bank allotted N410 million worth of the 93-day bill to investors at 12.60 percent, while it sold N87.42 billion worth of the 205-day bill at 14.40 percent.

Business Post reports that while the short-tenor instrument recorded low subscription (N30 billion put on offer), the long tenor bill caught the attention of traders (N70 billion on offer by the CBN).

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Like yesterday, the T-bills market is expected to remain slightly bearish today.

Meanwhile, the money market rates depreciated on Tuesday as the central bank continued with its mop up of the system through the issuance of OMO.

The overnight went down to 15.50 percent yesterday from 16.17 percent the previous day, while the open buy back (OBB) rate dropped to 14.67 percent from 15.17 percent on Monday.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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