Interest Rate on Nigerian OMO Bills Declines

Interest Rate on Nigerian OMO Bills Declines

Interest rate on Nigerian OMO Bills declined amidst strong investors’ appetite for the naira assets at the primary market auction. At the last auction conducted in 2024, the Central Bank of Nigeria (CBN) set lower spot rates for OMO bills amidst rising appetite.

Foreign portfolio investors (FPIs) and local deposit money banks staked huge bet on the back of elevated yield on short term interest liquidity management instruments. The CBN love for US dollar inflows influenced spot rates pricing on OMO bills in 2024.

At the primary market auction conducted by the monetary authority last week, the CBN offered N500 billion worth of OMO bills for subscription across two maturities.

The auction results reviewed by investment analysts showed that a total of N500 billion in OMO bills was allotted to investors, though total subscriptions reached ₦931.32 billion.

The stop rates were set at 23.93% and 23.95%, respectively. This translated to 2 and 3 basis points reduction compared to the previous auction rates of 23.95% and 23.98%. #Interest Rate on Nigerian OMO Bills Declines  CBN Opens FX Window for BDC to Stock up at NFEM Rate