One-Month Treasury Bills Yield Falls to 9.61%

By Dipo Olowookere

The yield on the 30-day treasury bills depreciated on Tuesday by 0.35 percent to settle at 9.61 percent, Business Post is reporting.

The tenor suffered the heaviest loss yesterday as the average yields declined by 0.13 percent to finish at 11.58 percent.

It was observed that only the one-year debt instrument recorded a rise in its yield on Tuesday, though marginal, by 0.05 percent, to end at 13.19 percent.

Yield on the 90-day bill went down by 0.09 percent to close at 11.22 percent, while the 180-day instrument declined by 0.11 percent to finish at 12.29 percent.

The Central Bank of Nigeria (CBN) will tomorrow conduct the last primary market auction for the month of May 2019. During the exercise, the apex bank will auction N67 billion worth of T-bills to rollover existing NTB maturities.

Investors are expected to be aggressive in their bids, with rates anticipated to trend lower from previous levels on the 182 and 364-day offerings, but rise on the 91-day bill due to the uptrend in the clearing rate at the last OMO sale.

Meanwhile, rates in the money market declined slightly by 3 percent yesterday as system liquidity improved to N150 billion positive.

Consequently, the Open Buy Back (OBB) rate dropped to 12.00 percent from 14.50 percent, while the Overnight (OVN) rate fell to 13.43 percent from 15.29 percent.

“We expect rates to decline further in the next session, due to N134 billion expected OMO maturity inflows. This is however, barring a renewed OMO sale by the CBN,” analysts at Cowry Asset said.