CBN Floats N600bn OMO Bills, Allocates N81bn to Investors
The Central Bank of Nigeria (CBN) conducted an auction for N600 billion in OMO bills on Monday as part of its strategy to reduce excess liquidity in the financial system.
The system opened with surplus liquidity, driven by banks’ ongoing placements in the CBN’s Standing Deposit Facility (SDF). As a result of this liquidity, the Nigerian Interbank Offered Rates (NIBOR) saw declines across most maturities.
The overnight rate fell by 8 basis points to 22.29%, indicating there was substantial liquidity in the banking system despite the N600 billion OMO auction.
However, money market financing costs showed mixed trends, with the Overnight rate rising by 8 basis points to 22.29%, while the Open Repo rate remained stable at 22.00%.
The CBN offered N600 billion in OMO bills with maturities of 8, 99, and 113 days. In the end, N81 billion was allocated across these mid-tenored papers at stop rates of 19.35% and 19.69%, respectively.
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