T-Bills Yields Drops to 15.54% as Overnight Rate Falls to 4.08%

By Modupe Gbadeyanka

The treasury bills market was bearish on Monday as activities resumed, leaving the average yields to fall at the close of business.

Business Post reports that the T-bill yields depreciated to 15.54 percent from 16.24 percent in the previous session.

The decline and downward momentum at the market comes as the Central Bank of Nigeria (CBN) is yet to resume the sale of the government instrument via the open market operations (OMO).

This bearish trend is expected to continue on Tuesday especially in the absence of any significant intervention by the apex bank.

Meanwhile, the overnight rate depreciated to 4.08 percent from 6.25 percent recorded in the last trading session on Friday.

Similarly, the open buy back (OBB) rate slumped to 3.25 percent from 5.17 percent in the last previous session.

The fall by the rates was caused by the inflows from FAAC payments as well as the retail forex refunds by the CBN.

The rates are expected to remain lowered as market players anticipate inflows of N70 billion from OMO.