By Dipo Olowookere
The treasury bills market was bullish on Tuesday as investors prepared for the primary market auction by the Central Bank of Nigeria (CBN) today.
Business Post reports that during the trading session, average yield of the debt instrument went down by 0.36 percent to settle for the day at 10.67 percent.
This followed the decline recorded by the maturities at the market yesterday with the 3-month tenor emerging the worst hit with 0.59 percent to finish at 9.71 percent.
Yield on the one-month maturity went down by 0.24 percent to close at 9.45 percent, the 6-month bill dropped 0.37 percent to end at 11.12 percent, while the 12-month instrument lost 0.23 percent to settle at 12.40 percent.
During today’s PMA, the apex bank will offer treasury bills worth N107.1 billion to investors at the market in three different tenors; 91-day, 182-day and 364-day.
A further analysis showed that N5.85 billion worth of the 91-day instrument, N26.60 billion worth of the 182-day tenor and N74.60 billion worth of the 364-day maturity would be offered for sale at the exercise.
Meanwhile, average rates of the money market remained relatively stable yesterday as system liquidity remained robust at about N350 billion.
The Open Buy Back (OBB) and the Overnight (OVN) rates consequently ended the session at 2.50 percent and 3.07 percent respectively.
