CBN Allots to Match as OMO Bills Subscription Hits N2.7trn
The Central Bank of Nigeria (CBN) allotted OMO bills to match the aggregate subscription from investors seeking high-yield naira assets at the primary market auction.
Against N2 trillion offered, Investors staked about N2.7 trillion on the Nigerian OMO bills auction floated by the Apex Bank on Thursday as part of liquidity management efforts.
MarketForces Africa reported that excess funds in the banking system hovered above N7 trillion amidst fresh inflows from matured OMO bills during the week.
The money market received N2.07 trillion in OMO repayments this week without equivalent liquidity mop-up, which enlarged surplus funds in the financial system.
To reduce the surplus, the monetary authority floated OMO bills for subscription, offering N2 trillion across 138-day and 180-day maturities.
Broadstreet analysts said the auction was oversubscribed, attracting about N2.7 trillion in total subscriptions. As a result, Apex Bank raised about N2.655 trillion across the tenors.
Auction results showed that the authority raised about N2.7 trillion, comprising N855 billion for the short tenor and N1.8 trillion for the mid-tenor offered for subscription.
The Nigerian OMO bill with 138 days to maturity, totalling N855.2 billion, was allotted to investors at a spot rate of 17.63%.
The CBN also allotted an 180-day OMO bill, totalling N1.8 trillion, to successful investors at a spot rate of 17.14%. #CBN Allots to Match as OMO Bills Subscription Hits N2.7trn
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