One-Year T-Bills Yield Declines to 12.13%

By Dipo Olowookere

Yield on the one-year treasury bills depreciated by 0.11 percent at the secondary market on Tuesday to settle at 12.13 percent, Business Post is reporting.

It was observed at the market yesterday that the yields went down for most maturities tracked amid renewed bullish activity in the secondary market.

Apart from the 12-month instrument, which suffered a reduction in its yields, other maturities which experienced the same fate were the 3-month and six-month.

Only the one-month tenor recorded an increase on its yield, appreciating marginally by 0.04 percent to finish at 9.80 percent at the close of business.

The 3-month maturity depreciated by 0.34 percent to settle at 10.34 percent, while the 6-month instrument lost 0.14 percent to end at 11.29 percent.

At the close of transactions on Tuesday, yield on the treasury bills at the secondary market depreciated on the average by 0.14 percent on Tuesday to close at 10.89 percent.

This decline in the average yields yesterday came despite the boost in system liquidity from FAAC inflows in the previous session.

Today, the Central Bank of Nigeria (CBN) would offer a total of N209 billion T-bills, to rollover maturing NTBs.

Meanwhile, rates in the money declined further by 8.82 percent yesterday as inflows from FAAC payments boosted system liquidity to N290 billion positive.

This came on the back of the 8.57 percent decline recorded by the Open Buy Back (OBB) rate and the 9.07 percent depreciation suffered by the Overnight (OVN) rate.

By the time the session ended on Tuesday, the OBB rate dropped to 4.57 percent from 13.14 percent in the previous day, while the OVN rate fell to 5.21 percent from 14.29 percent.