Treasury Bills Yields Jump to 13.13% Wednesday

By Dipo Olowookere

The average yields of treasury bills at the secondary market in Nigeria yesterday increased by 0.46 percent to 13.13 percent in the absence of an OMO auction by the Central Bank of Nigeria (CBN).

During the midweek session, yields rose across the four maturities tracked by Business Post, with the shorter end of the curve recording the highest increase at the close of business.

It was observed during the trading session that the yields moved higher during the trading session as a result of a sustained bearish activity in the secondary treasury bills market.

An analysis of the performance of each tenor showed that the one-month maturity increased by 0.69 percent to close at 12.43 percent from 11.74 percent.

The three-month instrument saw its yields rising by 0.34 percent to settle at 12.52 percent from 12.18 percent, yield on the six-month bill appreciated by 0.58 percent to 12.94 percent from 12.35 percent, while yield on the 12-month maturity rose by 0.22 percent to 14.61 percent from 14.39 percent.

Meanwhile, the money market rates slightly dropped on Wednesday by 0.79 percent from what was recorded at Tuesday’s trading as bond maturities improved system liquidity.

Business Post reports that the Open Buy Back (OBB) rate went down by 0.93 percent, while the Overnight (OVN) rate depreciated by 0.64 percent at the close of transactions.

This consequently left the OBB rate going down to 3.50 percent from 4.43 percent at the close of business, while the OVN rate went down to 4.36 percent from 5.00 percent.