CBN Sells OMO Bill at 22.43% Interest Rate to Investors
The Central Bank of Nigeria (CBN) sold OMO bills at a spot rate of 22.34% for one year securities to investors who bid for 363-day tenor at the primary market auction conducted on Wednesday.
OMO bill market rates remained elevated following monetray policy rate adjustment. This is an attempt to entice foreign investors into the Nigerian economy in the face of persistent US dollar scarcity despite the country’s overreliance on imports.
At auction, the CBN offered N500 billion across various standard maturities. Bids amounted to N73 million for the 174-day instrument and N903.05 billion for the 363-day instrument, CardinalStone Securities Limited told investors in a note.
The OMO bill auction results, however, showed that there was no bids for the 90-day instrument at the auction condcuted. The investment firm said total sales and stop rates were N73 million at 19.64% for the 174-day instrument.
The CBN sold N499.27 billion worth of 363 day OMO bills at 22.34% to market participants at the auction. In the secondary market, the average yield dipped by 1bp to 21.5% in the OMO bills segment due to thin transaction recorded.
Meanwhile, interbank rates diverged as the open repo rate declined by 9 basis points while the overnight lending rate advanced by 192 basis points to close at 31.23% and 32.00%, respectively. #CBN Sells OMO Bill at 22.43% Interest Rate to Investors>>>Investors Get 21.50% Interest Rate on OMO Bills
