CBN Closed Interest Rate on OMO Bills Offer at 22.73%

CBN Closed Interest Rate on OMO Bills Offer at 22.73%

The Central Bank of Nigeria (CBN) has issued fresh OMO bills at the primary market across two tenors to banks and foreign portfolio investors at spot rates of 22.73% for longer tenor and 22.69% for lower duration.

The monetary authority opened N500 billion on Tuesday to eligible market participants—banks and offshore investors-—after it successfully raised about N1.01 trillion on Friday.

The CBN priced rates higher as part of efforts to keep the naira assets attractive and draw foreign portfolio investors’ money into Nigeria, causing the auction to outperform its target as value hunters continue to take positions.

According to auction results cited by analysts, the OMO bills offered were oversubscribed by 2.1x, or ₦556.85 billion.  Total subscriptions reached N1.06 trillion as against N1.39 trillion bids reported on Friday.

The tenors for the two offers at the latest OMO auction differ from the previous raise in terms of tenor. The CBN allotted OMO bills worth N804.85 billion cumulatively across two maturities, with stop rates printing at 22.69% and 22.73% for the 329-day and 350-day maturities, respectively.

The stop rate on 298-day surged by 3.18% to 22.37%. At the same time, the spot rate for 319-day OMO bills rose by 3.28% to close at 22.73%. #CBN Closed Interest Rate on OMO Bills Offer at 22.73% Pension Fund Assets Grows to N23.366 Trillion