Treasury Bills Yields Drop 0.31% to Settle at 12.47%

By Dipo Olowookere

The secondary market for treasury bills in Nigeria was bullish on Monday, with the corresponding yields closing on the negative side.

Huge demands for the debt instrument by investors saw the yields pointing south across the tenors at the market yesterday.

Business Post reports that at the close of transactions, the average yields of T-bills went down by 0.31 percent to settle at 12.47 percent.

During trading on Monday, the Central Bank of Nigeria (CBN) did not float any Open Market Operations (OMO), but market players are anticipating the rolling over of some bills later this week by the apex bank via the primary market auction (PMA).

A quick look at the performances of the treasury bills yesterday showed that yields on the one-month instrument went down by 0.34 percent to settle at 11.03 percent.

The 3-month bill dropped 0.81 percent to finish at 11.97 percent, the 6-month instrument depreciated by 0.06 percent to close at 12.91 percent, while the 12-month bill fell by 0.03 percent to settle at 13.98 percent.

Meanwhile, the average money market rate went up by 1.36 percent on Monday to finish at 12.50 percent.

This came on the back of the 1.43 percent rise recorded by the Open Buy Back (OBB) rate and the 1.29 percent appreciation printed by the Overnight (OVN) rate during trading yesterday.

At the close of business, the OBB rate went up to 12.29 percent from 10.86 percent in the previous session, while the OVN rate increased to 12.71 percent from 11.43 percent last Friday.

The rates are still expected to further be on the high side amid anticipated strain in financial system liquidity in the absence of FAAC.

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. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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