By Dipo Olowookere
The secondary market for treasury bills in Nigeria traded bullish on Friday as investors ponder on the previous day’s OMO auction by the Central Bank of Nigeria (CBN).
During yesterday’s trading session, treasury bills yields depleted across the tenors as a result of the renewed demand pressure from market players.
Business Post reports that the average treasuries yields went down by 0.49 percent on Friday to settle for the day at 10.34 percent.
An analysis of the performance of each of the maturity showed that the 3-month instrument suffered the heaviest decline as its yield went down by 1.04 percent yesterday to finish at 9.25 percent.
The yield on the six-month tenor depreciated by 0.48 percent to close at 10.77 percent, while the yield on the one-month bill declined by 0.35 percent to end at 8.99 percent, with the yield on the decreased by 0.08 percent to settle at 12.36 percent.
Meanwhile, the was a upsurge in the money market rates on Friday, with the Open Buy Back (OBB) and the Overnight (OVN) rate closing in double digits.
This was buoyed by the 5.64 percent increase recorded by both the OBB and OVN rates, leaving the average rates closing 5.64 percent higher to 12.29 percent.
While the OBB rate ended yesterday’s session at 11.93 percent, the OVN rate settled at 12.64 percent.
Adedapo Adesanya