- Sell Pressure Hits Treasury Bills Market
Following the sizeable yield decline on Tuesday, sell pressure was witnessed across the Treasury bills space, as the average T-bills yield advanced by 0.26 per cent to settle at 10.98 per cent.
Yield gains were recorded along the shorter tenors, with the one-month, three-month and six-month tenors recording respective increases of 0.65 per cent, 2.50 per cent and 1.27 per cent. However, yields on the nine-month and 12-month tenors declined by 0.36 per cent and 2.76 per cent, respectively.
At the close of the day’s trading session, the open buy-back and overnight money market rates recorded respective advancements of 17 basis points and 8bps to settle at 2.50 per cent and three per cent, accordingly. Consequently, the average money market rate settled higher at 2.75 per cent.
In spite of the primary market auction held on Wednesday, bullish sentiments, according to Meristem analysts, pervaded the secondary bond space, as the average bond yield declined by 0.49 per cent. All instruments with yield movement recorded declines, save for the May-2018 instrument which advanced by 0.32 per cent.