CBN Auctioned N600bn in OMO Bills, Raises N3.5trn at 20%
The Central Bank of Nigeria (CBN) floated an OMO bill auction totalling N600 billion across three tenors on Tuesday amidst excess liquidity in the financial system.
The auction was well subscribed by deposit money banks (DMBs) and foreign portfolio investors (FPIs) with bags of hot money seeking high-yield investment options in the market.
Market liquidity opened the week in a credit balance of N4.51 trillion, representing an increase of ₦733.59 billion from Friday’s closing level, analysts at Herwood Capital Limited said in a note.
The CBN conducted an open market operation to counter N2.19 trillion in OMO maturities and reduce the influence of excess liquidity on the economy and money market rates.
At today’s auction, the CBN offered a total of N600.00 billion across the 91-day, 119-day, and 133-day tenors, CardinalStone Securities Limited told investors in an update.
Spot rates on the total amount allotted to eligible investors topped 20% across the tenors, signalling sustained elevated interest rates in the Nigerian financial market.
The investment firm said the robust demand was matched with allotments worth N3.5 trillion at stop rates of 20.60%, 20.29%, and 20.15% for the 91-day, 119-day, and 133-day tenors, respectively.
CBN to Auction N700 billion Worth of Nigerian Treasury Bills
