CBN Sells OMO Bills Worth N2.4trn, Prices Mid-Tenor 21.9%
The Central Bank of Nigeria (CBN) sold OMO bills worth N2.4 trillion to banks, and foreign portfolio investors at the primary market auction floated on Monday.
The authority, in a bid to mop up excess liquidity level in the financial system, held an OMO auction today, offering bills worth N600.0 billion across 8-day and 113-day papers.
Investment firms reported that the auction was sold out. Strong demand was observed, with total subscriptions received amounting to c.N3.0 trillion, which is 5.1x bid to offer. Ultimately, N2.4 trillion was allotted at stop rates of 21.90% and 19.79% for the 8-day and 113-day papers, respectively.
Nigeria’s fixed income market saw mixed moves across segments during the holiday-shortened week. Activity in the Treasury bills primary market was marked by a sizable increase in supply, as the Central Bank offered N1.05 trillion across the 91-day, 182-day, and 364-day tenors in its second auction for the month, compared to N850.00 billion at the prior auction.
Investor participation also strengthened, with total subscriptions rising to N3.06 trillion, buoyed by ample system liquidity, which averaged at N7.21 trillion before the auction day.
Despite this improvement in demand, the amount allotted declined to N691.86 billion, down from N933.92 billion previously, indicating a selective/price-conscious issuance approach.
In terms of pricing, the 91-day rate held steady at 15.95%, while the 182-day and 364-day bills edged lower by 3bps and 9bps to 16.62% and 16.63%, respectively. Zenith Bank Becomes Most Valuable Lender in Nigerian Market
