Treasury Bills Yields Jump to 12.99% Friday

By Dipo Olowookere

The secondary market for treasury bills in the country traded bearish on Friday with the yields moving in different directions across the tenors tracked at the trading session.

However, the average yields faced north by 0.07 percent yesterday to close at 12.99 percent as investors look forward to another trading week with the expectation of further rise in the yields.

Business Post reports that there was a buying pressure on the three-month and 12-month maturities, while there was sell pressure on the one-month and six-month tenors.

At the close of business, yield on the 90-day instrument went down by 0.10 percent to settle at 11.82 percent from 11.92 percent, the one on the 364-day tenor slightly depreciated by 0.05 percent to finish at 15.13 percent from 15.18 percent.

For the yield on the 30-day maturity, it however, appreciated by 0.26 percent to close at 12.19 percent from 11.93 percent, while yield on the 180-day instrument increased by 0.17 percent to 12.82 percent from 12.65 percent.

In the previous session, treasury bills worth N347.68 billion matured via OMO, which combined with the primary market maturities, resulting in total inflows worth N506.33 billion.

A look at the money market on Friday indicated a significant rise in the rates as the Open Buy Back (OBB) rate rose to 22.43 percent, while the Overnight (OVN) rate jumped to 24.71 percent.

This was buoyed by the 11.00 percent growth recorded by the OBB rate and the 12.43 percent appreciation posted by the OVN rate, resulting in the average rates rising by 11.72 percent to settle at 23.57 percent.