12-Month Treasury Bills Yield Rises to 14.73%

April 9, 2019
treasury bills yields

By Dipo Olowookere

The average treasury bills yield increased on Monday by 0.44 percent to close at 13.47 percent, Business Post is reporting.

The highest rise in yield was recorded by the one-month instrument, which rose by 1.96 percent to settle at 12.06 percent.

Yield on the 6-month paper appreciated by 0.07 percent to 13.96 percent, the 9-month note increased by 0.01 percent to 14.48 percent, while the 12-month bill jumped by 0.23 percent to 14.73 percent.

However, the 3-month instrument was the lone loser yesterday, shedding 0.06 percent to end at 12.10 percent.

It was observed that the secondary market for treasury bills was relatively quiet as liquidity was further tightened due to funding for a wholesale FX auction by the Central Bank of Nigeria (CBN).

There was no OMO auction by the central bank yesterday and if none is issued this week, yields could remain relatively stable at current levels.

Meanwhile, the average money market rates appreciated by 4 percent on Monday to settle at 19.72 percent.

This came on the back of the 4.14 percent and 3.86 percent growth recorded by the Open Buy Back (OBB) and the Overnight (OVN) rates respectively.

While the OBB rate rose to 19.43 percent from 15.29 percent, the OVN rate jumped to 20.00 percent from 16.14 percent.

“We expect rates to moderate slightly tomorrow, as banks would be able to access the CBN’s SLF for their funding needs at slightly lower rates,” Zedcrest Research said.

Dipo Olowookere

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 [email protected]

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