CBN Priced OMO Bills Rate at 22.65%, Raised N1 Trillion
The Central Bank of Nigeria (CBN) sold 361-day OMO bills at a spot rate of 22.65% at the main auction conducted on Friday. The market has seen an improved US dollar, bolstered by foreign investors seeking to take positions in local debt assets.
At the OMO auction, the CaBN offered N600 billion across two long-dated maturities, CardinalStone Securities Limited said in an investors’’ note. Due to a robust liquidity level in the financial system, the offer was significantly oversubscribed amidst expectation of an interest rate adjustment at the monetary policy committee meeting in February.
CBN auction results revealed that demand or total subscription was robust. Analysts said total subscriptions reached N2.9 trillion, resulting in a 4.8x bid-to-offer ratio.
The CBN allotted N1.0 trillion across both maturities, setting stop rates at 22.50% for the 347-day bill and 22.65% for the 361-day bill, according to CardinalStone Securities, from 22.81% and 23.84%, respectively, at the previous auction sales. #CBN Priced OMO Bills Rate at 22.65%, Raised N1 Trillion Telecom Hike: LCCI Seeks Continuous Stakeholders’ Engagement
