One Month Treasury Bills Yield Falls to 8.90%

By Dipo Olowookere

The yield on the 30-day treasury bills depreciated at the secondary market on Thursday, Business Post is reporting.

While other tenors recorded increase in their yields, only the one-month maturity suffered a loss, going down by 0.22 percent at the close of business yesterday to settle at 8.90 percent from 9.11 percent in the previous session.

Yesterday, the market experienced inflows from OMO T-bill maturities worth N90 billion, which spurred slight interests on the mid and long end of the curve.

When transactions were wrapped up, yield on the 3-month tenor appreciated by 0.69 percent to close at 10.61 percent, the one on the 6-month maturity rose by 0.46 percent to finish at 11.16 percent, while yield on the 12-month bill increased by 0.40 percent to end at 11.98 percent.

According to Zedcrest Research, yields are expected “to remain slightly pressured (on Friday), with outflows for bond auction settlement expected to further impact on system liquidity levels.

Meanwhile, rates in the money market remained elevated, despite the OMO T-bill inflows of N90 billion.

Consequently, the Open Buy Back (OBB) rate dropped to 14.29 percent from 15.86 percent, while the Overnight (OVN) rate went straight to 15.00 percent from 16.43 percent.

“We expect rates to trend higher (today) due to expected outflows for the FGN bond auction settlement of N86 billion.