One-Month Treasury Bills Yields Rise to 11.77%

By Dipo Olowookere

The secondary market for treasury bills in Nigeria closed bullish on Monday amid significant increase in the yields on the short end of the curve.

Business Post reports that the 30-day bill recorded a 1.52 percent expansion in the yields during the trading session to end at 11.77 percent.

This came on the back of an absence of an OMO auction by the Central Bank of Nigeria (CBN), which caused the average yields to fall at the close of business by 0.06 percent to settle at 12.60 percent.

The 3-month bill suffered a 0.22 percent decline in yields to close at 11.29 percent, the 6-month instrument dropped 0.21 percent to end at 13.10 percent, while the 12-month bill appreciated by 0.06 percent to finish at 14.23 percent.

Yields are expected to remain relatively stable in absence of a renewed OMO auction by the CBN, according to Cowry Asset analysts.

Meanwhile, the Open Buy Back (OBB) and Overnight (OVN) rates spiked higher by nearly 6 percent yesterday as a result of the wholesale forex auction by the CBN which further drained system liquidity.

The OBB and OVN rates consequently ended the session at 16.00 percent and 16.71 percent respectively.

“We expect rates to remain relatively unchanged tomorrow, as there are no significant inflows anticipated,” Cowry Asset said.