The average yields of treasury bills jumped marginally on Tuesday by 0.06 percent to 15.44 percent, as the Central Bank of Nigeria, CBN, failed to sell OMO bills.
The apex bank had offered N60 billion worth of government instruments for sale to investors, however, the CBN received no bid from market players for the N20 billion worth of the 93-day bill it auctioned.
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.
The CBN will conduct another primary market auction on Wednesday and investors are expected to shift their attention to this.
T-bills yields are expected to trend downwards on Wednesday as inflows from retail funds further bolster market liquidity.
Also, inflows from maturing OMO bills on Thursday are expected to boost bullish sentiments, as market players expect the import of the NO-sale result for Tuesday’s OMO auction.
Meanwhile, the overnight rate dropped to 15.33 percent from 20 percent, while the open buy back (OBB) rate depreciated to 14.33 percent from 18 percent.
