Average yields on benchmark OMO bills spiked following massive sell-off on 1-yr OMO bills which caused yields on longer-dated bills to reach as high as 20% on Tuesday.
Data from FMDQ Group for Tuesday show that yields across benchmark Nigerian OMO bills rose to an average of 16.957% from 14.89%.
The rise was fuelled by a 4.49 and 2.66 percent points increase in yields on OMO bills dated Jan and Feb 2021 to 20.15% and 19.54% each.
This compares to yields of 15.66% and 16.88% on the OMO bills at the start of the week while their respective discount rates rose 3.44 and 1.98 percent points to 17.34% and 16.67%.
Despite the sell-off on long-dated bills, investors were bullish on short-dated bills and steered-off intermediate bills.
The surge in yields on one-year bills come as oil dips below $30 per barrel for the first time since 2006 and ahead of Thursday’s OMO maturity.
