The Monetary Policy Committee (MPC)’s recent 50 basis point cut is now accelerating the convergence between Open Market Operations (OMO) bills and Nigerian Treasury Bills (NTBs), correcting a long-standing artificial disparity created by policy restrictions.
In September, yields across the short-term instruments continued to moderate, with OMO yields falling faster than NTB yields. The spread between one-year tenors of both instruments has compressed to 300 basis points from 650 basis points over the past five months.
Yields on the 364-da
