Treasury Bills Yields Drop as Market Trades Slightly Bullish

By Modupe Gbadeyanka

The treasury bills market traded slightly bullish yesterday as the Central Bank of Nigeria (CBN) failed to conduct another Open Market Operations (OMO).

Consequently, the T-bills yields declined marginally on Wednesday by 0.05 percent.

It was gathered that the inability of the apex bank to sell OMO bills yesterday propelled some buy interests on the medium to long end of the curve.

According to analysts at Zedcrest Research, the market is expected to remain slightly bullish today as market players anticipate inflows from OMO maturities.

Meanwhile, the money market rates dropped on Wednesday as there were no significant outflows from the system.

The overnight rate fell to 12.50 percent from 13.42 percent on Tuesday, while the Open Buy Back (OBB) rate declined to 11.33 percent from 12.67 percent.

The rates are expected to be relatively stable at these levels today with the CBN expected to resume its OMO Auction to offset inflows from maturing OMO bills.