Weak Demand Pushes Treasury Bills Yields Higher by 0.05%

By Dipo Olowookere

Treasury bills yields marginally rose on Friday as investor appetite for the government’s debt instrument weaned.

It was observed at the market yesterday that investors were demanding for higher yields from willing sellers.

According to analysts at Zedcrest Research, this left the T-bills market relatively stable with slight demand seen on some of the short and mid-tenured bills due to the relatively buoyant level of liquidity in the system.

“In the coming week, we do not expect this trend to change, as demand for T-bills remains relatively week, despite the persistently robust system liquidity levels,” Zedcrest Research said.

Meanwhile, the Open Buy Back (OBB) rate dropped yesterday to 6.75 percent from 6.83 percent, while the Overnight rate went up to 7.92 percent from 7.75 percent.

However, System Liquidity was published to have declined to N360 billion positive based on CBN’s official figures.

The rates are expected to remain moderated in the coming week, with inflows from FAAC and OMO maturities expected to support outflows for the regular CBN OMO and FX auction sales.