CBN Raises N4.3trn from OMO, Treasury Bills Subscriptions
The Central Bank of Nigeria (CBN) raised about N4.3 trillion through OMO and Treasury bill auctions conducted amid sustained declines in spot rates.
The fixed income market welcomed primary market auctions for Nigerian Treasury bills, after the Apex bank open market operation targeting excess liquidity in the financial system.
At the primary market auction for Treasury bills, the CBN offered N900 billion across the 91-day, 182-day and 364-day instruments, attracting subscriptions of approximately N1.8 trillion.
Details from the released auction results showed that the total allotment reached N968 billion, exceeding the initial offer by N68 billion. Investment firm Cowry Asset Management Limited said the excess subscription and allotment highlight sustained investor appetite for government securities.
Despite lower interest rates on debt market instruments, investors maintained robust positioning in the naira asset as the inflation rate continues to moderate.
Stop rates on the 91-day and 182-day Nigerian Treasury bills remained unchanged at 15.50% and 15.80%, respectively, while the 364-day stop rate declined by 4bps to 15.85%.
The lower long-tenor stop rate, despite the marginal increase in secondary market yields, points to continued demand for longer-dated government paper at the primary auction, according to Cowry Asset Limited.
At the CBN’s OMO auction, the authority offered N2.0 trillion across the 147-day and 182-day maturities, but subscriptions reached N3.5 trillion, underscoring strong investor demand for short-term sterilisation instruments.
Total allotment amounted to N3.3 trillion, exceeding the announced offer by N1.3 trillion. Stop rates cleared at 17.22% for the 147-day instrument and 16.92% for the 182-day instrument.
The substantial oversubscription and elevated allotment suggest that the CBN continued to attract significant liquidity into OMO instruments, reinforcing the role of monetary operations in shaping money-market conditions. Central Bank Sells N3.3tn in Nigerian OMO Bills to Investors
