T-Bills Market Bullish Amid Absence of CBN OMO Sales
By Dipo Olowookere
For the second trading day, the Central Bank of Nigeria (CBN) failed to carry out its usual liquidity mop up through the sale of treasury bills through the Open Market Operations (OMO).
However, this did not stop the T-bills market from trading somewhat positive yesterday.
Business Post observed that average T-bills yields were mixed with yield on the 44DTM bill increasing by 93bps to settle at 12.96 percent, while the yield on the 142DTM bill fell by 98bps to close at 14.75 percent.
Traders expect the apex bank to resume issuance of OMO bills today as a result of the N309 billion bills maturing today.
However, if the exercise is not conducted today, there may likely be a drop in the yields of treasury bills at the market.
Meanwhile, the money market rates declined on Wednesday as a result of the absence of the OMO sales by the central bank.
At the close of transactions, the overnight rate went down to 14.57 percent from 17.21 percent in the previous session.
Also, the open buy back (OBB) rate declined to 13.86 percent from 16.33 percent recorded on Tuesday.