CBN Floats OMO Bills, Raises N3trn from N4.4trn Subscription
The Central Bank of Nigeria (CBN) conducted another open market operation (OMO) on Tuesday as part of an effort to mop up excess liquidity in the financial system.
Foreign portfolio investors’ (FPIs) and deposit money banks’ (DMBs) total demand spikes after two consecutive primary market under allotments by the authority since Friday.
The Apex Bank floated N600 billion for investors’ subscription on Tuesday as excess liquidity in the banking system crossed N6 trillion amidst the previous auction settlement.
Market analysts reported that Tuesday’s OMO auction is the third floated by the Apex Bank since it resumed liquidity management last week Friday – after weeks of inactivity.
The auction with N600 billion in total offers caught investors’ attentions, and subscription levels came in strong, surpassing demand recorded at the previous auction on Friday and Monday.
Total subscription amounted to N4.4 trillion, reflecting increasing appetite for naira assets. The CBN allotted bills worth N3.0 trillion with stop rates at 19.45% and 19.49% for the 168-day and 196-day bills, respectively.
On Monday, out of N3.32 trillion subscription recorded, the CBN allotted ₦998.1 billion worth of OMO bills to investors. At last week’s OMO auction, the CBN raised N98 billion and rejected 97% of the total subsection submitted by investors. First Holdco YTD Return Tightens as Share Price Slips
