Central Bank Raises N1.4trn from OMO Bills Auction
The Central Bank of Nigeria (CBN) raised N1.4 trillion from OMO bills offered at the primary market auction conducted on Thursday. The auction which was strong oversubscribed attracted local banks and foreign portfolio investors seeking to take advantage of higher yield on naira assets.
Demand for money market instruments has continued to increase on the back of elevated yield on naira assets. Inflation pressures has changed the market dynamics. The CBN adopted monetary policy tightening to fight off inflation but the consumer price index has gotten worse, settling at 34.80% in Dec, 2024.
At the end of OMO bills auction, investment banking firms said in their separate reports that the offered attracted strong demand of more than three times the total offered to market participants.
Specifically, the auction results revealed that alpha seeking investors submitted a total bid of N1.92 trillion to chase ₦600 billion OMO bills opened for subscriptions by the autority. At the end of the day, the CBN sold ₦1.4 trillion, traders said in their separate reports.
Stop rates for 355-day and 362-day bills closed at 21.3249% and 21.45%, respectively. #Central Bank Raises N1.4trn from OMO Bills Auction CBN Opens FX Window for BDC to Stock up at NFEM Rate
