CBN Allots 150-Day OMO Bill to Investors at 19.44% Spot Rate

CBN Allots 150-Day OMO Bill to Investors at 19.44% Spot Rate

The Central Bank of Nigeria (CBN) continued its open market operations on Friday, where N1.28 trillion was raised from local banks and foreign portfolio investors.

The significant liquidity level in the financial system triggered the Apex Bank reactions with successive open market operations. Excess liquidity in the financial system could fuel inflation, analysts told MarketForces Africa.

The week’s operations marked the fourth liquidity management-propelled action in less than two weeks after the monetary authority absences.

At the auction, the authority offered to sell N600 billion worth of OMO bills across the short-term tenors.  The OMO duration was split into 81 days, 109 days and 151 days to expiration before investors get repayments.

Reflecting hunger for the naira assets, total subscriptions reached NGN2.08 trillion, representing a bid-to-offer ratio of 3.5x.  The auction result showed that the CBN allotted NGN1.28 billion worth of OMO bills across the three tenors opened for subscription.

The authority priced 81 days OMO bills at 19.35%; 190-day bills was sold to investors at a discount rate of 19.39% and 151 days paper attracted 19.44% spot rate. #CBN Allots 150-Day OMO Bill to Investors at 19.44% Spot Rate Oando Plunges by Half over Discounted Investors’ Trust