Investors Get 26.50% Interest Rate on CBN OMO Bills
The Central Bank of Nigeria (CBN) conducted another open market operation where OMO bills worth N400 billion were offered to foreign portfolio investors and local deposit money banks.
The authority announced new OMO bills for subscription on Tuesday as it consolidates liquidity management efforts in the money market. At the primary market auction, the CBN floated N400 billion worth of OMO bills for subscription. The total sum was for 84-day to maturity OMO bills.
The auction was opened to reduce the liquidity boost from recently expired OMO bills. The CBN, however, under-allotted its offer size, selling N349.5 billion worth of bills expiring in 84 days at a stop rate of 26.50%.
Total subscription from the floated OMO bills printed at ₦710.96 billion in subscriptions and allotted ₦349.46 billion—reflecting preference for long-duration investment.
In the money market, the interbank market stayed liquid with ₦758 billion OMO maturity inflows. The latest trend showed the CBN has increased rates to keep foreign portfolio investors coming with hot money. #Investors Get 26.50% Interest Rate on CBN OMO Bills
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