CBN Holds OMO Bills Auction, Raises N2.98trn
The Central Bank of Nigeria (CBN) raised N2.98 trillion from its open market operation action held on Tuesday to combat excess liquidity in the money market.
The CBN floated N600 billion in OMO bills across short tenors of an equal amount amidst inflows from expired papers. The CBN opened subscription for Nigerian OMO bills with 175 days to maturity and another 182 days to maturity.
The market recorded an inflow of N1.4 trillion, necessitating the need for a primary market auction. The market has seen excess liquidity growing to N5.4 trillion, according to AIICO Capital Limited, due to additional inflow matured short term instruments.
In the secondary market, OMO bills yield expanded as investors trimmed their holdings. Meanwhile, treasury bills market traded on a quiet note as the average yield declined.
Across the curve, the average yield contracted at the short (-1bp), mid (-1bp), and (-1bp) segments.
The yield cotraction was driven by the demand for the 79-day to maturity (-1bp), 170-day to maturity (-1bp) and 352-daty to maturity (-1bp) bills, respectively.
Conversely, the average yield expanded by 6bps to 21.8% in the OMO segment. #CBN Holds OMO Bills Auction, Raises N2.98trn. #CBN Holds OMO Bills Auction, Raises N2.98trn#
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