CBN OMO Bills Auction Attracts N5.9 trillion in Subscription
The Central Bank of Nigeria (CBN) open market operation (OMO bills) attracted significant subscription from deposit money banks (DMBs) and foreign portfolio investors (FPIs).
The eligible market participants staked N5.9 trillion on short-term investment securities, which was more than the amount bet on the short-term bills rejected by the authority on Tuesday.
As part of efforts to absorb excess liquidity in the financial system, the monetary authority floated OMO bills worth N600 billion for subscription on Thursday.
The authority had rejected N4.9 trillion subscription received from investors that bid for OMO bills on Tuesday, with zero allotment.
The CBN turned down the amount, although more than N2 trillion OMO bills was due for repayment. The refusal to mop up excess liquidity on Tuesday boosted excess funds in the banking system above N6 trillion.
The money market excess liquidity, however, reduced on Thursday following OMO sales totalling ₦3.79 trillion, according to AIICO Capital Limited. #CBN OMO Bills Auction Attracts N5.9 trillion in Subscription After Spot Rates Hike, DMO Reopens 7, 10-Year Bonds for Sale
