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T-Bills Market Slightly Bearish Ahead of Wednesday’s PMA

By Dipo Olowookere

The treasury bills market was slightly bearish on Tuesday ahead of the primary market auction to be conducted by the Central Bank of Nigeria (CBN) on Wednesday.

During the trading session, the average T-bills yields trended higher by 0.13 percent, according to analysts at Zedcrest Research in their daily market report.

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This was following slight selloff mostly on the DEC – MAR maturities as market players trimmed positions in anticipation of Wednesday’s PMA exercise.

At the PMA, yields are expected to clear slightly above their previous levels due to the continued pressure on yields from the frequent OMO auctions by the apex bank.

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Meanwhile, the average money market rate depreciated on Tuesday by 0.83 percent to settle at 6.13 percent.

This followed the 0.41 percent decline recorded by the Open Buy Back (OBB) rate and the 0.42 percent drop in the Overnight (OVN) rate.

At the close of business, the OBB rate went down to 5.67 percent from 6.08 percent, while the OVN rate fell to 6.58 percent from 7.00 percent.

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This was as system liquidity remained moderately robust at N293 billion positive, with rates expected to remain relatively unchanged today in absence of any significant outflows.

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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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