CBN Rejects N1.3 trn OMO Bills Subscription from Investors
The Central Bank of Nigeria (CBN) snubbed N1.3 trillion in total subscription staked against the open market operation (OMO) bills floated at the main auction on Tuesday.
The monetary authority auctioned N600 billion worth of OMO bills across standard maturities, recording significant subscription from foreign portfolio investors and banks – the eligible market players.
The split showed that OMO bills with 98 days maturity and 140 days tenors worth N300 billion were offered for subscription amidst rising liquidity levels in the financial system.
The offer was meant to replace huge OMO bills set for repayment.
Total subscription for the short-term tenors OMO bills came strong, settling at about N1.3 trillion. The CBN rejected all the subscriptions without making any allotment ahead of its ad hoc midweek auction.
In the secondary market, trading activity on Nigerian OMO bills was relatively flattish as market participants shifted attention to the main auction. Hence, average yield was steadied at 22%.
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