Buying Pressure Cuts T-Bills Yields to 13.88%

By Dipo Olowookere

The average treasury bills yields went down to 13.88 percent at the secondary market on Tuesday after shedding 0.17 percent, Business Post is reporting.

This was caused by renewed buying pressure witnessed on the short and mid end of the curve yesterday as investors begin to take position at the market. However, selling pressure was still observed during the trading session on the long end of the curve.

At the close of transactions on Tuesday, yields declined on the one-month, three-month and six-month maturities, while it appreciated on the one-year tenor.

An analysis showed that yield on the 30-day instrument went down by 0.47 percent to close at 12.84 percent, the 90-day tenor suffered a 0.14 percent drop in yield to settle at 13.16 percent, the 189-day maturity recorded a 0.26 percent fall in yield to finish at 14.22 percent, while yield on the 364-day debt instrument appreciated by 0.18 percent to end at 15.29 percent.

On Thursday, investors are expectant that the Central Bank of Nigeria (CBN) will offer T-bills at the open market when about N204 billion OMO bills mature.

Meanwhile, the money market was bearish yesterday with average rates trending downwards as a result of the 0.86 percent decline recorded by the Open Buy Back (OBB) rate and the 0.93 percent fall printed by the Overnight (OVN) rate at the session.

Business Post reports that this reduced the average rates by 0.90 percent to 8.47 percent.

At the end of the day, the OBB rate declined to 8.00 percent from 8.86 percent, while the OVN rate reduced to 8.93 percent from 9.86 percent.

According to Zedcrest Research, “We expect rates to remain stable April 26, 2024 as there are no significant funding pressures anticipated.”