CBN Raises N2.796trn from OMO Bills, Rates Below 20%
The Central Bank of Nigeria (CBN) raised N2.796 trillion from an OMO bill auction held on Wednesday, with wider participation following the removal of the previous restriction on retail investors.
The authority floated N1 trillion in OMO bills across two tenors – 92 and 132 days – with maturities split evenly between the two at N500 billion each.
Total subscription printed significantly higher, reflecting excess liquidity in the money market at the time. Total subscription at the OMO bills auction reached N4.261 trillion.
Nigerian OMO bills with 97-day tenors attracted N783.485 billion in subscription money, while 137-day instruments attracted more than N3.477 trillion from yield-seeking investors.
The CBN allotted N613 billion in 97-day OMO bills to investors at a rate of 19.90%, according to auction results reviewed by MarketForces Africa on Wednesday.
A total of N2.183 trillion worth of OMO bills with 137 days to maturity was sold to investors at a rate of 19.65%. Market analysts observed a downward trend in the spot rate.
At the previous OMO auction, the CBN sold 103 papers at a rate of 20.39%, supporting the authority’s decision to remove market restrictions. OMO Bills Reopening Drives Funds Away from Nigerian Stocks
