CBN Allots N854bn in Fresh OMO Bills to Investors
With an allotment of about N854 billion, the Central Bank of Nigeria (CBN) floated N600 billion in OMO bills for subscription at the primary market auction on Tuesday.
The monetary authority conducted its last open market operation to reduce excess liquidity in the financial system and to refinance expired OMO bills.
The market recorded ₦1.02 trillion in OMO bills maturing amid excess liquidity in the financial system, with banks maintaining placements at the Standing Deposit Facility. The OMO bill offer was split across the 70-day and 140-day tenors. Total subscriptions amounted to N1.3 trillion.
Ultimately, the CBN sold a substantial N853.75 billion at competitive stop rates of 19.90% for the 70-day tenor and 19.92% for the 140-day tenor, demonstrating robust market engagement.
As the month ends, the influx of funds will likely keep system liquidity elevated.
However, attention will remain firmly on the CBN, as recent trends suggest the apex bank may intensify its liquidity management efforts through additional auctions to absorb excess cash and stabilise rates.
