CBN Sells N2.55trn OMO Bills as Subscription Hits N3.1trn
The Central Bank of Nigeria (CBN) sold OMO bills worth N2.55 trillion at open market operation on Thursday to reduce the heightened liquidity level in the financial system.
The authority floated OMO bills worth N600 billion across two standard tenors at the primary market auction as excess liquidity in the financial system approached N5 trillion.
The offer size was split into N300 billion worth of Nigerian OMO bills that will expire 152-day and 173-day tenors respectively. Yields seeking eligible market participants – banks and foreign investors staked more than N3 trillion in bet on Nigeria’s government short-term instruments.
Total bids amounted to ₦3.09 trillion across the two tenors. The CBN allotted ₦2.55 trillion worth of Nigerian OMO bills across the standard tenors to market participants.
Stop rates cleared at 20.59% (152-day) and 20.69% (173-day), translating to effective yields of 22.52% and 22.93%, respectively, according to TrustBanc Financial Group Limited.
The Nigerian Treasury bills market traded on a cautious-to-positive note, buoyed by ample system liquidity with bullish sentiment across the curve.
Notably, yields declined slightly across most maturities, led by the 8-Oct-26 bill, which fell 25bps to 15.40%, while the 5-Nov-26 rose 2 bps to 15.33%. Overall, the average rate dipped by 1bp to 15.76%.
#CBN Sells N2.55trn OMO Bills as Subscription Hits N3.1trn #Risk-Off Sentiment: Nigeria’s US Dollar Bonds Yield Rises to 7.7%
