Dipo Olowookere
By Dipo Olowookere
The secondary market for treasury bills in Nigeria closed bullish on Thursday, with the corresponding yields facing south.
Business Post reports that this occurred in the midst of the inflows from OMO maturities yesterday, which raised the level of liquidity in the financial system.
At the close of transactions on Thursday, the average treasury bills yield went down by 0.07 percent to settle at 12.03 percent.
It was observed that during yesterday’s trading session, only the 180-day debt instrument recorded a growth in its yield. The bill saw a 0.08 percent increase in yield to 12.52 percent.
Yield on the 30-day tenor dropped 0.22 percent to finish at 11.02 percent, the 90-day bill declined by 0.14 percent to end at 10.84 percent, while the 364-day instrument depreciated by 0.01 percent to finish at 13.73 percent.
Against expectations, the Central Bank of Nigeria (CBN) did not float an OMO sale to soak the excess cash in the system.
It is anticipated that the market will remain relatively stable in the near term as a result of the robust system liquidity levels.
Meanwhile, the average money market rates depreciated yesterday by 2.47 percent to settle for the day at 4.72 percent.
This followed the 2.43 percent decline printed by the Open Buy Back (OBB) rate and the 2.50 percent fall recorded by the Overnight (OVN) rate.
At the end of transactions on Thursday, the OBB rate fell to 4.43 percent from 6.86 percent, while the OVN rate crashed to 5.00 percent from 7.50 percent.
According to Cowry Asset, “We expect rates to close the week on a stable note as there are significant outflows anticipated.”
