CBN Cuts Interest Rate on OMO Bill to 21.87%
The Central Bank of Nigeria (CBN) has slashed spot rate on OMO Bill by 2 basis points at the primary market auction conducted on Tuesday as investors stake huge bet on naira asset.
MarketForces Africa reported that the two auctions were flopped as the authority left investors who bided for the open market operations instrument empty without allotments.
In the recent times, the apex bank has been slicing rates on government short term borrowing instruments downward to reflect changing market dynamics.
At the OMO auction held today, the CBN offered N500 billion across standard maturities. However, the CBN sold ₦758.00 billion worth of OMO bills, focusing only on the long-dated paper.
The stop rate for the one-year OMO bills declined by 2 basis points to settle at 21.87%, according to auction results. In the secondary market, the average yield expanded by 2bps to 24.5% in the OMO bills segment due to selloffs. #CBN Cuts Interest Rate on OMO Bill to 21.87%
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