CBN Sells OMO Bills to Investors at 21.80%
The Central Bank of Nigeria (CBN) opened September 2024 with another open market operation where it offered investors N500 million worth of OMO bills. One year OMO bills fell by 7 basis points at the auction to settle at 21.80% from 21.87% in the just concluded week.
Last week, the CBN sold N1.63 trillion worth of OMO bills to investors, notably deposit money banks and foreign portfolio investors, at moderate rates. Reflecting the mood to boost FX inflows into the economy, CBN offered N500 billion across standard maturities, and again, the rate on one year OMO bills declined.
Similar to the prior auction on August 27, 2024, sales only took place for the 365-day instrument, according to CardinalStone Securities Limited. Analysts reported that stop rates for the 365-day OMO bill came in lower at 21.80% compared to 21.87% at the previous auction.
In the secondary market, investors reacted to developments in the primary market auction. Investors increased their interest in OMO bills, and thus dragged yields lower. Traders said the average yield declined by 4 basis points to 22.8% in the OMO bills segment in the secondary market on Monday.
“After generating N1.63 trillion in two OMO auctions last week, the CBN offered N500 billion worth of bills across standard maturities today but sold ₦459.60 billion in bills to domestic and foreign investors. The stop rate for the long-dated paper was 21.80%, down 7 basis points from the previous stop rate,” Broadstreet analysts told MarketForces Africa in a phone chat. #CBN Sells OMO Bills to Investors at 21.80% Equities Investors Gain N123bn as UBA, OANDO Rally
