Six-Month Treasury Bill Yield Rises to 15.60%

By Dipo Olowookere

The yield on the six-month treasury bill gained 0.11 percent on Tuesday to settle at 15.60 percent from the 15.49 percent recorded on Monday, Business Post is reporting.

Also, at the secondary market yesterday, yield on the one month tenor rose by 0.68 percent to finish at 14.87 percent from 14.18 percent, while the three-month maturity appreciated by 1.14 percent to end at 14.53 percent from 13.39 percent, with yield on the one-year instrument growing by 0.10 percent to finish at 14.67 percent from 14.58 percent.

Business Post reports further that at the close of transactions at the secondary market yesterday, the average yield increased by 0.51 percent to settle at 14.92 percent. This occurred on the back of sustained sell sell-offs by investors.

The yields are expected to remain green for the rest of the week, with both wholesale FX and FGN Bond auctions today anticipated to further strain liquidity levels at the market.

Meanwhile, the average money market rates depreciated on Tuesday by 9.82 percent to settle at 19.47 percent despite system liquidity figures opening short at about N247 billion negative as participants capped interbank borrowing to SLF rates.

Consequently, the Open Buy Back (OBB) rate went down to 18.57 percent from 28.29 percent, while the Overnight (OVN) rate dropped to 20.36 percent from 30.29 percent.

“We expect rates to remain stable for the rest of the week, as banks provide funding for the CBN’s weekly wholesale FX auction as well as the DMO’s monthly Bond auction,” Lagos-based Zedcrest Research said.