CBN Sells N1.68trn OMO Bills to Investors at 19.32%
The Central Bank of Nigeria (CBN) raised N1.68 trillion from OMO bills allotted to authorised participants—local deposit money banks and foreign portfolio investors—at the primary market auction on Thursday.
The Apex Bank significant fund raise from its open market operations activities followed huge subscription at the primary market auction conducted on Thursday.
At the OMO auction, the CBN offered N600.00 billion, attracting strong demand with 3.1x bid-to-offer over sustained appetite for naira assets. Investors submitted N1.88 trillion in subscriptions for the bills on offer for the 355-day and 362-day tenors, investment banking firm CardinalStone Partners Limited said in a note.
The CBN allotted N1.68 trillion with an average stop rate of 19.32%, the investment firm told investors in a note today. In February, the CBN conducted only one OMO auction, reflecting a deliberate reduction in liquidity tightening measures.
The absence of aggressive OMO issuance played a critical role in the 400-bps drop in yields as excess liquidity remained in the system, fueling demand for fixed-income securities, Erad Partners Limited said in its investors note. Naira Rallies as CBN Defends Local Currency with $66m
