By Dipo Olowookere
For the second successive session, average yields of treasury bills at the secondary market depreciated amid sustained bullish sentiment.
Business Post reports that the decline was across all maturities except for the 6-month tenor, which appreciated by 0.13 percent to settle at 13.80 percent.
Starting with the one-month paper, it fell by 1.16 percent to finish at 10.34 percent, the 3-month note went down by 0.04 percent to close at 12.16 percent, the 9-month bill fell by 0.03 percent to drop to 16.64 percent, while the 12-month paper declined by 0.02 percent to finish at 17.35 percent.
Consequently, the average yield depreciated on Tuesday by 0.22 percent to settle at 14.06 percent.
At yesterday’s trading day, the Central Bank of Nigeria (CBN) failed to hold an Open Market Operations (OMO).
The market is anticipated to remain relatively stable today, barring a resumption in OMO sales by the CBN which could spook yields higher.
Meanwhile, rates in the money market depreciated by 9.29 percent to close at 15.45 percent as market funding pressures eased from the significant squeeze witnessed in the previous session.
Specifically, the Open Buy Back (OBB) and Overnight (OVN) rates declined by 7.50 percent and 11.08 percent apiece.
While the OBB rate declined to 15.00 percent from 23.33 percent, the OVN dropped to 15.83 percent from 26.08 percent.
Rates are expected to remain relatively stable at current levels, barring a renewed OMO sale by the central bank.
Adedapo Adesanya