By Dipo Olowookere
The average yields of treasury bills at the secondary market on Monday depreciated by 0.04 percent to settle at 12.70 percent, Business Post is reporting.
This was mainly due to drop recorded in the long end of the curve as a result of investor sentiment to the debt instruments.
The 6-month paper lost 0.04 percent yesterday to finish at 13.91 percent, while the 9-month note depreciated by 0.05 percent to close at 14.29 percent, with the 12-month bill going down by 0.16 percent to settle at 14.32 percent.
However, yields on the 3-month note appreciated by 0.07 percent, while the one-month instrument closed flat.
It was observed that the absence of OMO auction by the Central Bank of Nigeria (CBN) yesterday brought relative calm to the market.
Barring any OMO sale on Tuesday, T-bill yields should remain relatively stable as investors cherry-pick on some relatively attractive bills.
Meanwhile, the average money market rates declined by 2.69 percent on Monday to close for the day at 11.08 percent.
This came on the back of the 5.28 percent and 0.09 percent decline recorded by the Open Buy Back (OBB) and Overnight (OVN) rates respectively.
While the OBB rate dropped to 10.58 percent from 11.17 percent, the OVN rate fell to 11.58 percent from 11.67 percent.
At the trading session yesterday, the market received inflows from coupon payments of about N50 billion, which cushioned the effects of the day’s wholesale foreign exchange auction, with system liquidity estimated to have closed the session at N75 billion positive.
