CBN Allots N2.1trn OMO Bills to Investors at Decent Rates
The Central Bank of Nigeria (CBN) allotted OMO bills totalling N2.1 trillion to foreign portfolio investors and deposit money banks, the active players at the primary market auction on Friday.
The CBN auction targeted excess liquidity in the financial system, bolstered with inflows from the Federal Account Allocation Committee disbursement to states and the Federal Government.
The surplus liquidity was fuelled by N1.30 trillion FAAC inflows and N254.90 billion OMO bills that matured during the week.
Even with OMO bills action, the financial system’s net long position expanded to an average of NGN3.39 trillion from NGN2.41 trillion in the prior week. At the CBN open market operation, N600 billion worth of bills were floated for subscriptions across two standard tenors.
The CBN opened N300 billion worth of OMO bills with 193 days to expiration for subscription. It also floated Nigerian OMO bills with 249 days to maturity worth N300 billion for subscription on Friday.
The CBN operation attracted significant subscriptions from yield-seeking investors. Total subscription reached N2.1 trillion, translating to 3.53x bid-to-cover ratio.
The authority allotted N2.1 trillion OMO Bills across the two maturities. The stop rate closed at 19.40 for the 193-day bill and 19.89% for the 249-day bill. #CBN Allots N2.1trn OMO Bills to Investors at Decent Rates AXA Mansard Jumps by 12% as Investors Bet on Earnings Outlook
