CBN to Float OMO Auctions after 60% Bids Rejection

CBN to Float OMO Auctions after 60% Bids Rejection

Deposit money banks (DMBs) and foreign portfolio investors (FPIs) are actively positioning for the Central Bank of Nigeria (CBN) open market operations in the new week amid high liquidity in the financial system.

With N2.4 trillion primary market repayment expectations, analysts said the authority will float an operation to mop up excess liquidity in the market during the week.

The money market closed last with a stable liquidity level of N5.89 trillion, reflecting the CBN’s decisions at the OMO bill auctions.

The Apex rejected 60% of the total subscription for the two OMO bills operations last week despite an excess funding profile, though interbank rates were little changed.

At the auctions, the authority offered a total of ₦1.20 trillion and allotted ₦490 billion across two operations, based on ₦1.22 trillion in bids.

Stop rates hovered around 19.35% and 19.40% for the short-term instruments, with zero allotment made for 6-day OMO bills. Analysts reported that effective yields on that allotment settled at 20.41%–20.55%.#CBN to Float OMO Auctions after 60% Bids Rejection CBN to Open Treasury Bills for Subscription as N799bn Mature