By Dipo Olowookere
The treasury bills market remained slightly bullish on Friday despite the relative illiquidity in the money market.
According to analysts at Zedcrest Research, there was a sustained demand for the debt instrument by investors yesterday.
This followed the significant amount of lost bids witnessed at the previous day’s auction, where the Central Bank of Nigeria (CBN) sold N688.2 billion of the N550 billion OMO bills offered for sale.
During trading on Friday, the average treasury bills yields marginally decreased by 0.10 percent to settle at 13.48 percent.
“We expect the buying pressures to persist, given the paucity of offers especially on the long end of the curve,” Zedcrest Research said.
Meanwhile, rates in the money market trended higher by yesterday by 6 percent as a result of the liquidity squeeze from the significant OMO sale in the previous session.
The rates are expected to remain elevated opening the new week, with the CBN expected to resume its weekly wholesale FX interventions.
