By Dipo Olowookere
The average yields of treasury bills rose marginally on Tuesday by 0.06 percent to 15.44 percent, Business Post is reporting.
This occurred as the Central Bank of Nigeria (CBN) failed to sell OMO bills yesterday despite N60 billion worth of the government instruments it offered for sale to investors.
The apex bank received no bid from market players for the N20 billion worth of the 93-day bill it auctioned, while it had N18.14 billion worth of subscription for N40 billion worth of the 247-day bill offered. However, the central bank issued a No-Sale OMO result for the 247-day instrument.
Today, the CBN will conduct another primary market auction and investors will shift their attention to this.
T-bills yields are expected to trend downwards today as inflows from retail funds further bolster market liquidity.
Also, inflows from maturing OMO bills on Thursday are expected to strengthen bullish sentiments, as market players watch closely for the import of the NO-sale result for Tuesday’s OMO auction.
Meanwhile, the money market rates declined slightly on the backdrop of inflows from bond coupon payments and anticipated inflows for retail refunds.
Specifically, the overnight rate fell to 15.33 percent from 20 percent, while the open buy back (OBB) rate depreciated to 14.33 percent from 18 percent.
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