ga('send', 'pageview');

Treasury Bills Yields Drop 0.10% as Lending Rate Falls to 13.33%

By Dipo Olowookere

The overnight lending rate declined by 1.25 percent at the close of business on Friday, settling at 13.33 percent from 14.58 percent the previous day.

This was as the system liquidity was estimated to have closed the week relatively unchanged from its opening levels of N109 billion positive yesterday.

ALSO READ  Staco Insurance Fires Sakiru Oyefeso as CEO over Fraud

However, the money market rates are expected to trend higher opening next week as a result of the anticipated funding for a wholesale SMIS by the Central Bank of Nigeria (CBN) on Monday.

Meanwhile, the treasury bills market traded with mixed sentiments on Friday as market players cherry-picked on some maturities on the shorter end of the curve (NOV Maturities).

ALSO READ  CBN Sells N189.5 T-Bills via Primary, OMO Auctions in 4 Days

However, a slight risk off selling was observed on the longer end with yields consequently compressing slightly by 0.10 percent.

“In the coming week, we expect yields to trend slightly higher, due to expectations for a further tightening of system liquidity via expected OMO and FX interventions by the CBN,” Zedcrest Research said.

ALSO READ  Market Anticipate N309.1b Maturing Bills as Yields Expected to Drop

Related Articles

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.

more recommended stories

%d bloggers like this: