By Dipo Olowookere
Yields on the one-month treasury bills appreciated on Thursday by 1.18 percent to settle at 11.58 percent, Business Post reports.
It was observed that the secondary market for T-bills was dominated by bearish sentiment yesterday as investors trade cautiously ahead of next weeks’ presidential election in the country.
Apart from the 6-month yields which fell by 0.10 percent to close at 13.97 percent, and the 12-month bill which closed flat at 17.44 percent, every other tenor trended higher.
The 3-month tenor rose by 0.10 percent to finish at 12.24 percent, while the 9-month maturity advanced by 0.14 percent to end at 16.71 percent.
At the close of business, the average T-bills rate settled higher by 0.27 percent to settle at 14.39 percent.
During market yesterday, the Central Bank of Nigeria (CBN) floated another OMO auction which was significantly oversubscribed by market players especially on the 364-day bill offered.
The CBN consequently sold a total of N321 billion of the N250 billion offered as it looked to mop up the N315 billion in maturing OMO bills.
Yields are expected to close the week on a relatively flat note, with the CBN likely to sustain its OMO interventions in the market on Friday.
Meanwhile, the average money market rate settled lower at 17.87 percent, given the 3.34 percent and 3.41 percent decline in the Open Buy Back (OBB) and Overnight (OVN) rates, which closed that 17.33 percent and 18.42 percent respectively.
“We expect rates to remain elevated closing the week, as there are no significant inflows anticipated,” Zedcrest Research said.
