CBN Tightens Market Liquidity, Mops Up N3trn in OMO Bills
The Central Bank of Nigeria (CBN) mopped up about N3 trillion from open market operations, where N1 trillion worth of OMO bills were offered for subscription.
The Apex Bank floated an auction with a target to raise N1 trillion across three tenors, including 69-, 90- and 153-day maturities.
Supported by excess liquidity conditions in the financial system at the auction time, total subscriptions amounted to approximately N3.0 trillion, with investors showing stronger appetite for long duration.
The Central Bank allotted about N2.5 trillion in OMO bills to market participants, with all rates staying below 20% amidst sustained naira repricing in the fixed income market.
The auction results showed that the Apex Bank priced the three tenors at the stop rates of 19.25%, 19.05%, and 18.39%, respectively.
Nigerian Interbank Offered Rates closed Wednesday’s session on a bearish note, as the overnight rate ticked up 2bps to 22.20%, signalling tighter liquidity levels in the banking system.
Short-term money market funding costs displayed slight divergence, as the Overnight rate fell 2bps to 22.19% while the Open Repo rate remained unchanged at 22.00%.
CBN Allots N4.4trn in OMO Bills to Investors, Rates Below 20%
