Treasury Bills Yields Rise 0.13% on Selloffs by Investors

By Dipo Olowookere

Selling pressure recorded yesterday in the treasury bills space at the secondary market pushed the average yields of the debt instrument into the green territory.

Business Post reports that the Nigerian Interbank Treasury Bills’ True Yields (NITTY) increased at across most maturities tracked during the trading session.

An analysis of the tenors tracked at Monday’s session showed that yield on the one-month instrument rose by 0.08 percent to settle at 12.28 percent from 12.19 percent last Friday.

Yield on the 3-month debt instrument appreciated by 0.27 percent to close at 12.09 percent from 11.82 percent, yield on the 6-month bill appreciated by 0.15 percent to finish at 12.96 percent from 12.82 percent, while yield on the 12-month maturity increased by 0.01 percent to end at 15.14 percent from 15.13 percent.

Consequently, the average yields on the four tenors monitored at yesterday’s trading session appreciated by 0.13 percent to settle at 13.12 percent.

Tomorrow, the Central Bank of Nigeria (CBN) is expected to conduct a primary market auction (PMA), where it would resell maturing treasury bills worth N179.75 billion to market participants.

At the exercise, the apex bank would offer the debt instruments in three maturities; 91-day bills worth N3.00 billion, 182-day bills worth N8.39 billion and 364-day bills worth N168.36 billion.

Analysts at Business Post expect more selloffs in the secondary market today as traders prepare for Wednesday’s PMA, where they would anticipate attractive stop rates, especially on the longer tenor like in the past exercises in recent times.

Meanwhile, rates at the money market significantly increased at yesterday trading session as the Open Buy Back (OBB) rate appreciated to 33.86 percent, while the Overnight (OVN) rate jumped to 36.36 percent.

This followed the 11.43 percent increase posted by the OBB rate and the 11.64 percent growth printed by the OVN rate. This left the average rates yesterday closing at 35.11 percent after rising by 11.54 percent.