T-Bills Yields Settle at 15.40% After 0.09% Rise

By Modupe Gbadeyanka

The secondary treasury bills market was very busy yesterday, with the Central Bank of Nigeria (CBN) conducting another Open Market Operations (OMO).

On Thursday, N497.8 billion worth of primary and secondary treasury bills matured with the apex bank consequently rolling over about 95 percent of maturing bills during the day’s OMO auction.

At the exercise, the central bank sold a total of N471.24 billion across the three maturities on offer, including special OMO sales of N195.50 billion.

Of the N50 billion worth of the 98-day bill offered, the apex bank sold N6.62 billion. Of the N150 billion worth of the 189-day paper, the bank allotted N16.72 billion and of the N350 billion worth of the 364-day note, the CBN sold N252.40 billion.

At the close of business yesterday, the average T-bills yields increased by 0.09 percent to finish at 15.40 percent.

The yields are expected to remain elevated to close the week as market liquidity shrinks from expected outflows.

Meanwhile, the money market rates closed lower yesterday despite liquidity mop up by the CBN via the sale of OMO securities.

Open Buy Back (OBB) and Overnight (OVN) rates declined by 9.49 percent and 6.88 percent, settling at 13.58 percent and 14.83 percent apiece, with the average money market rate closing at 14.21 percent. Consequently, system liquidity is estimated to close in a negative territory of N52 billion, while analysts at Zedcrest Research “expect rates to close the week higher as market participants provide funding for FX Retail interventions by the CBN.”