CBN Rejects N4.9 Trillion in OMO Bills Subscription
The Central Bank of Nigeria (CBN) rejected subscriptions totalling N4.9 trillion staked on OMO bills by the eligible market participants at the auction conducted on Tuesday.
Amidst excess liquidity conditions in the financial system, the CBN floated N600 billion in OMO bills in an attempt to refinance expired bills totaling N2.14 trillion due for repayment.
MarketForces Africa reported that fixed income analysts anticipated the auction to be well received as the money market hits about N4 trillion in net long position.
At auction, N600.0 billion worth of OMO bills was on offer across 2 tenors. While subscription totaled N4.9 trillion, the auction ended with no sale or allotment being made, investment firms reported.
In the Treasury Bills segment, secondary market yields displayed mixed movements, with the 1-month, 6-month, and 12- month maturities declining by 9bps, 9bps, and 4bps respectively, whereas the 3-month tenor rose 2bps.
The average yield on Nigerian Treasury bills fell 1bp to 18.46%, indicating improved investor confidence and a more supportive environment in the secondary market. CBN Rejects N4.9 Trillion in OMO Bills Subscription First Holdco Loses 5.8% as Buying Sentiment Fades
