One-Month T-Bill Yield Rises by 0.50% to 10.21%

By Dipo Olowookere

The yield on the one-month treasury bill increased at the secondary market on Monday in the absence of an OMO auction by the Central Bank of Nigeria (CBN).

Business Post reports that the 30-day instrument, which ended in the previous session at 9.72 percent, appreciated by 0.50 percent yesterday to finish at 10.21 percent.

In the same vein, the 3-month debt instrument recorded a marginal 0.03 percent improvement in its yield to close at 10.10 percent, while yield on the 6-month bill rose by 0.16 percent to finish at 11.25 percent, higher than 11.09 percent in the previous session.

However, yield on the 12-month instrument suffered slight depreciation, going down by 0.01 percent at the close of business on Monday to settle at 11.98 percent.

By the time market wrapped up activities, the average yield improved by 0.17 percent to settle at 10.89 percent amid buoyant system liquidity levels.

It is anticipated by investors will continue to trade cautiously and expect the central bank to float an OMO in the week in order to mopped the excess liquidity in the system.

Meanwhile, rates in the money market remained relatively stable, as system liquidity remained at an estimated N220 billion positive, despite outflows for FX auction sales by the CBN.

This consequently left the Open Buy Back (OBB) rate dropping to 5.43 percent from 5.64 percent and the Overnight (OVN) rate going down to 6.00 percent from 6.43 percent.

The rates are expected to trend slightly lower on Tuesday as there are no significant outflows anticipated by market players.