CBN Raises N2.9trn as Investors Oversubscribe OMO Bills Offering
The Central Bank of Nigeria (CBN) raised N2.9 trillion from OMO bills at Tuesday’s primary market auction to mop up excess liquidity in the financial system.
The market opened with more than N7.3 trillion in excess liquidity after investors received N2 trillion in OMO bill repayments. The CBN conducted an OMO auction, offering N1.5 trillion across 119-, 126-, and 133-day maturities.
Demand was healthy, with the auction attracting N3.5 trillion in total subscriptions, traders said. The authority allotted N2.9 trillion worth of bills across the short-term tenors. The Apex Bank sold about N339.8 billion worth of 119-day OMO bills.
The authority allotted N247.3 billion in 126-day OMO bills and about N2.4 trillion in 133-day bills. The stop rate on 119-day OMO bills was 17.77%, 126-day bills 17.71%, and 133-day bills 17.67%.
However, the Nigerian Treasury bills market closed bearish, with expansion at the short end (+4bps) offsetting contractions in the mid (-1bp) and long (-2bps) segments, pushing mean yields up 1bp to 17.89%. Nigeria’s US Dollar Bonds Dumped as 10-Year Yield Surges to 8%
