By Dipo Olowookere
Treasury bills yields depreciated at the secondary market on Tuesday in the absence of the sale of the debt instrument by the Central Bank of Nigeria (CBN) via the Open Market Operations (OMO).
It was observed that the market was relatively bullish yesterday amid buoyant liquidity in the system as market players await the mopping up of the excess cash through the usual OMO auction. The market also finished in the day as a result of a renewed demand in the secondary treasury bills market.
At the close of transactions, the yields fell across the four tenors tracked by Business Post, with the average yields going down by 0.30 percent to settle at 12.62 percent.
The one-month maturity was the most hit on Tuesday at the market as its yield went down by 0.80 percent to close at 11.13 percent from 11.93 percent it finished in the previous session.
The three-month debt instrument followed with its yield declining by 0.29 percent to settle at 12.08 percent as against 12.37 percent it closed at the previous trading day.
At yesterday’s session, yield on the one-year T-bills depreciated by 0.09 percent to finish at 14.63 percent versus 14.72 percent a day earlier, while yield on the six-month tenor declined by 0.02 percent to close at 12.64 percent in contrast to 12.66 percent it ended the previous day.
If the apex bank fails to intervene at the market today, yields are expected to further remain depressed and the secondary market staying bullish.
At the money market on Tuesday, the average rates went down by 0.97 percent to settle at 3.43 percent as the system is still awash with liquidity. This came on the back of the 0.93 percent decline suffered by the Open Buy Back (OBB) rate and the 1.00 percent fall recorded by the Overnight (OVN) rate.
Consequently, the OBB rate went down to 3.07 percent 4.00 percent, while the OVN rate depreciated to 3.79 percent from 4.79 percent.
Adedapo Adesanya