One-Month T-Bills Yield Depreciates to 8.74%

By Dipo Olowookere

Yield on the one-month treasury bills depreciated by 1.06 percent to 8.74 percent from 9.80 percent at the secondary market on Friday, Business Post reports.

Also suffering the same fate at the market during the session were yields on the three-month treasury bill and the 12-month debt instrument.

At the close of business, yield on the three-month tenor declined by 0.32 percent to 9.13 percent from 9.45 percent, while yield on the 12-month maturity went down by 0.91 percent to 11.93 percent from 12.84 percent.

Only six-month bill recorded a growth in yield, rising by 0.34 percent yesterday to 10.26 percent from 9.92 percent, leaving the average yields declining by 0.49 percent to settle at 10.12 percent.

With the new move by the Central Bank of Nigeria (CBN), yields are expected to continue to decline in the fixed income space.

At the money market yesterday, the average rates moved from single-digit region to double digits at the close of transactions on the back of the 6.36 percent growth posted by the Open Buy Back (OBB) rate and the 6.29 percent improvement achieved by the Overnight (OVN) rate.

This left the average rates increasing by 6.33 percent to settle at 13.57 percent. At the close of business, the OBB rate rose to 13.07 percent from 6.71 percent, while the OVN rate increased to 14.07 percent from 7.79 percent.

It was observed that at Friday’s session, interbank liquidity dwindled as a result of the debits made by the banking sector watchdog, CBN, from Cash Reserve Ratios (CRR) of selected banks.

With banks expected to provide funding for forex Wholesale and retail auction debits next week, rates are anticipated to slightly trend upwards with some respite at the tail end of the week with OMO maturities of N305 billion to flow into the system.