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T-Bills Market Bearish as Yields Decline to 13.65%

By Dipo Olowookere

The average treasury bills yields depreciated by 0.65 percent on Tuesday to settle at 13.65 percent at the close of transactions.

This was as the market was filled by bullish investor sentiment as investors stayed on the sidelines in anticipation of a second NTB primary market auction (PMA) for the month of September.

Apart from the continued interests on the OCT maturities, the 1-month paper, which declined by 1.82 percent, yields marginally drop across other tenors.

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Specifically, the 3-month, 6-month, 9-month and 12-month instruments recorded respective yield declines of 0.39 percent, 0.45 percent, 0.39 percent and 0.19 percent.

As market players gear up for today’s PMA, the rates are expected to surpass the 13.50 percent for the one-year tenor.

Meanwhile, the average money market rate dropped to the single-digit region on Tuesday after going down by 2.38 percent to settle at 9.88 percent.

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The Open Buy Back (OBB) rate went down to 9.50 percent from 11.83 percent, while the Overnight (OVN) rate crashed to 10.25 percent from 12.67 percent.

This came on the back of inflows of N41 billion from coupon payments on the March 2036 bond and system liquidity, which opened the day at N253 billion is consequently estimated to close at N294 billion positive.

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“We expect the rates to remain stable in the interim, as there are no significant outflows anticipated,” analysts at Zedcrest Research said.

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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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