CBN Raised N4.5trn from OMO, Treasury Bills Auctions
The Central Bank of Nigeria (CBN) raised a total of NGN4.5 trillion through OMO and Treasury bills last week, as investor demand for naira assets remains strong via primary market auctions (PMAs)
In the primary market, the CBN offered NGN600.0 billion in OMO bills, with total subscriptions reaching NGN3.3 trillion, representing an oversubscription of more than fivefold, CSL Stockbrokers said in a note on Monday.
The investment revealed that total allotments stood at approximately NGN3.0 trillion, comprising NGN169.0 billion for the 7-day tenor at a stop rate of 21.5%, NGN465.0 billion for the 35-day tenor at 21.4%, and NGN2.4 trillion for the 133-day tenor at 20.0%.
On behalf of the CBN, the Debt Management Office (DMO) offered NGN1.0 trillion in Treasury bills last week. Market analysts reported that investor demand was robust, with total subscriptions amounting to NGN2.2 trillion, more than double the amount offered.
Total allotments reached NGN1.5 trillion, comprising NGN131.2 billion for the 91-day tenor at a stop rate of 16.1%, NGN83.0 billion for the 182-day tenor at 16.2%, and NGN1.2 trillion for the 364-day tenor at 16.4%.
The market expects NGN1.25 trillion in OMO bills and NGN144.4 billion in Nigerian Treasury bills inflows to mature this week, boosting system liquidity.
Last week, the financial system liquidity declined, closing at approximately NGN4.8 trillion, down from NGN6.0 trillion the previous week.
The contraction was primarily driven by a reduction in banks’ net placements at the Standing Deposit Facility, as well as by net sales of Nigerian Treasury Bills and Open Market Operation bills.
In the secondary market, trading activity remained broadly bullish, reflecting sustained investor appetite for short-term fixed-income securities.
Consequently, the average benchmark yield on Nigerian Treasury bills declined marginally by 8bps to 17.8%.
In its note, CSL Stockbrokers said market sentiment is expected to remain positive, supported by continued investor preference for short-dated instruments amid prevailing global risk-off sentiment and lingering uncertainties surrounding capital flows. Global Equities Markets Bearish, Wall St, Euro Stoxx 50 Slip
