T-Bills Yields Settle at 14.50% as CBN Mops up N410b

By Dipo Olowookere

Another Open Market Operations (OMO) was conducted on Thursday by the Central Bank of Nigeria (CBN) to mop up excess liquidity from the system.

During the exercise, the apex bank sold treasury bills worth N409.9 billion, enough to soak inflows of N380 billion OMO maturities yesterday.

Business Post reports that reaction of investors to the significant OMO sale dropped the average yields down by 0.60 percent to 14.50 percent.

Yields fell for most maturities tracked amid sustained bullish activity.

The one-month yield fell by 0.55 percent to settle at 12.57 percent, the 3-month yield slumped by 0.15 percent to 11.87 percent and the 6-month yield fell by 0.02 percent to 14.29 percent.

However, yield on the 9-month paper appreciated by 0.11 percent to 16.65 percent, while the 12-month note rose by 0.01 percent to close at 17.10 percent.

On the OMO auction on Thursday, the apex bank kept the rates unchanged, but there were huge interests in the one-year paper.

N350 billion worth of the bill was offered for sale, subscriptions valued at N332.21 billion were received, with N385.5 billion eventually allotted.

Of the N70 billion worth of the 182-day note, N18.38 billion was allotted, while N6.06 billion of the N30 billion worth of the 91-day paper was sold to investors.

Meanwhile, the average money market rates depreciated yesterday by 2.67 percent to settle for the day at 12.67 percent.

This came of the back of the 2.67 percent declined suffered each by the Open Buy Back (OBB) and the Overnight (OVN) rates to settle at 12.33 percent and 13.00 percent respectively.

With no significant inflows expected today, the rates are expected to remain at their present levels, though the apex bank may decide to float another OMO sale.