CBN Allots OMO Bills to Investors at The Rate of 25.99%
The Central Bank of Nigeria (CBN) offered local banks and foreign portfolio investors 25.99% as a spot rate for OMO bills with 124 days to maturity, details from the primary market auction conducted by the authority revealed.
Economic reforms have continued to boost foreign investors’ sentiment about the Nigerian economy and financial market offerings. The CBN achieved FX inflows via OMO sales at relatively high spot rates to attract and keep offshore investors in the economy.
The CBN conducted an open market operation on Thursday after more than N1 trillion in inflows flooded the financial system, reversing the deficit liquidity condition to a surplus. Hence, the monetary authority floated N600 billion OMO bills across two standard tenors.
Details from the auction showed that the authority opened N300 billion worth of OMO bills expiring in 89 days for subscription. Also, OMO bills expiring in 124 days’ worth N300 billion was floated for subscription at the main auction.
Demand came in strong, with a total subscription of N1.0 trillion. The CBN, however, sold a total of N897.2 billion, with stop rates printing at 25.50% and 25.99% for the respective tenors. The OMO auction was floated to counter inflows from matured papers this week.
The market had anticipated the main auction would be conducted earlier in the week. #CBN Allots OMO Bills to Investors at The Rate of 25.99% CBN Selectively Hikes Interest Rates on Nigerian Treasury Bills
