CBN Allots N756bn OMO Bills to Investors, Rates Tighten
The Central Bank of Nigeria (CBN) conducted its open market operations where OMO bills worth N756.74 billion was allotted to authorised market participants – foreign investors and Nigerian banks at relatively tight spot rates.
MarketForces Africa reported that the monetary authority opened N500 billion OMO bills for subscriptions on Tuesday, the third offering in less in two weeks.
The auction results revealed that the CBN auction saw a significant demand, though appetite appeared to have reduced sharply in comparison to the last two auctions in April.
Demand outstripped supply, AIICO Capital Limited told investors in a note, with total subscriptions reaching N773.74 billion and allotments at ₦756.74 billion.
Despite the liquidity drain from the auction, money market rates held firm at 26.5% due to offsetting inflows from ₦239.15 billion in maturing OMO bills. The Treasury bills market turned bearish in the secondary market, particularly for Mar/Apr OMO bills papers, following the OMO auction announcement.
Holders tried to offload positions ahead of the issuance, but buyer interest stayed muted. Spot rates on 315 day OMO bills tenor closed at 22.65% while 329-day OMO bills was priced at the spot rate of 22.72%. #CBN Allots N756bn OMO Bills to Investors, Rates Tighten Oil Falls Below $60 as OPEC+ Members Set to Boost Supply
