In a surprising turn of events, the yields on the one-year treasury bill (T-bills) inched up by 0.6 percent to 19.76 percent at the primary auction on Wednesday, as the Debt Management Office (DMO) and investors battle for comfortable levels for yields.
The climb in yields is a detour from the past five auctions, where yields on the one-year bill have been on a consistent decline. Yields on the one-year have dropped to 19.76 percent from 29 percent at the beginning of the year.
“The tick up in yield is as a result of the battle between the Debt Management Office (DMO) and investors on where they are individually comfortable with yields,” said Olaolu Boboye, head of research at CardinalStone, an investment bank.