Nigerian OMO Bills Yield Climbs 15 bps to 22.2%
The average yield on Nigerian OMO bills rose by 15 basis points to 22.2% in the secondary market due to sell pressures amidst two primary market auctions.
The Central Bank of Nigeria (CBN) floated two OMO bill auctions totalling N1.2 trillion in an attempt to mop up excess liquidity in the financial system.
In the secondary market, banks and foreign portfolio investors rebalance positions in anticipation of rates adjustment across the short term OMO bills tenors.
OMO curve witnessed mild selloffs as investor jitters following President Trump’s recent comments on Nigeria’s security situation. OMO yields rose by 15bps to 22.2%.
Additionally, the CBN conducted an OMO auction, offering NGN600.00 billion worth of bills. Total subscriptions reached NGN1.18 trillion, representing a bid-to-offer ratio of 2.0x.
Eventually, the CBN sold only NGN273.60 billion, with stop rates of 21.69% and 21.84% on the 56 days and 84 days bills, respectively. On Friday, the authority floated another OMO bills with the same offer size.
Also, the Treasury bills market traded with mixed sentiments across instruments. Bullish activity dominated the Treasury bills segment as investors sought to fill unmet bids from the primary auction.
Traders reported selective buying across the curve. The 3 Sept 2026 bill led the rally, reversing earlier profit-taking and consistently attracting strong demand ahead of the Nigerian Treasury bills auction.
At the midweek treasury bills auction, the CBN offered bills worth NGN650.00 billion. The amount offered is split into NGN100.00 billion for the 91-day bills, NGN100.00 billion for the 182-day bills, and NGN450.00 billion for the 364-day bills.
Total subscription increased to NGN1.18 trillion versus NGN750.91 billion recorded in the previous auction, indicating a bid-to-offer ratio of 1.8x.
The auction closed with the CBN allotting NGN546.34 billion, split into NGN31.18 billion for the 91D, NGN10.29 billion for the 182D, and NGN504.87 billion for the 364-day papers.
Stop rates for 91 days bills were unchanged at 15.30% and 15.50% while 364 days bills was priced down by 10 basis points to 16.04%. The average yield on Nigerian Treasury bills closed at 17.6%. Nigeria’s External Reserves Provide 11-Month Import Cover – CBN
