CBN Allots N2.6trn as OMO Bills Subscription Tops N4.6trn
The Central Bank of Nigeria (CBN) turned down more than N2.4 trillion in investors’ money as total subscription at the open market operation topped N4.6 trillion, according to auction results reviewed by MarketForces Africa.
Banks and foreign portfolio investors increased their bets on OMO bills at the auction, as elevated yields in the fixed-income market keep naira assets attractive.
With the intention of mopping up excess liquidity in the financial system, the Apex Bank conducted an open market operation in which N600 billion worth of Nigerian OMO bills were offered for subscription across two tenors.
The two offers include Nigerian OMO Bills with 103- and 138-day maturities, each worth N300 billion. With about N7 trillion in excess liquidity reported in the banking system, the market witnessed total demand of N4.649 trillion across tenors, with a preference for longer durations.
The authority raised N2.603 trillion at the auction, which would be settled against the financial system credit balance on Friday.
Total demand for the 103-day OMO bill was N1.268 trillion against the N300 billion offer, and the Apex Bank only approved N449.740 billion from the bids received at a 20.39% spot rate,
Aggregate subscription for 138 OMO bills was N3.657 trillion, which chased N300 billion offer size put on the table, and allotment was N2.154 trillion, priced at the spot rate of 20.01%
