Yields on T-Bills, OMO Mixed as Naira Appreciates

Yields on T-Bills, OMO Mixed as Naira Appreciates

The average yield on Nigerian Treasury bills remained flattish on Wednesday amidst thin trading sessions in the secondary market. However, investors in the local debt capital market pushed demand for open market operations bills (OMO) higher, dragging yield lower, according to data from the fixed income market.

In the foreign exchange (FX) market, the exchange rate appreciated to N461.35 per United States dollar at investors’ and exporters’ window as demand. Today’s exchange rate rebound at the official window was supported by reduced demand for foreign currencies midweek amidst 2023 presidential election victory.

Following pressures on liquidity levels in the financial system, short-term benchmark rates in the money market spiked. The average interbank rate surged as local banks began to demand higher rates on their cash positions.

Data from the FMDQ Exchange platform show that the open repo rate (OPR), stayed stable at 10.50%, while the overnight lending rate (OVN) declined 2 basis points to 10.81% (from 10.83%).

Analysts told MarketForces Africa that the average yield closed flat at 4%. Elsewhere the average yield contracted by 74 basis points to 3.0% in the OMO bills segment. # Yields on T-Bills, OMO Mixed as Naira Appreciates

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