OMO Bills Yield Eased as CBN Offered 25.99% on 124-Day
The average yield on Nigerian OMO bills declined by two basis points, hovering around 25%, as eligible investors rushed to boost their portfolios following a primary market auction that the Central Bank conducted on Thursday.
Return on OMO bills remains the most attractive short-term investment in the financial market. Sustained decline in the headline inflation rate has widened the real return on investment (real interest rate) to 5.62% in addition to the relative stability of the naira.
While the average yield on Nigerian Treasury bills has fallen sharply, OMO bill returns remain elevated as the authority keeps focus on positive impacts of foreign portfolio investors’ participation in forex.
At the auction, foreign portfolio investors and Nigerian deposit money banks who are eligible participants staked more than N1 trillion on CBN OMO bills on Thursday across short-term offerings that were floated.
Investment banking firms confirmed that there were few trades on the OMO bills that will mature in March 2026.The CBN auction was well received, and the CBN allotted more than the total offer size. Hence, the T-bills market traded quietly as focus shifted to the OMO auction.
CBN offered N600 billion across 89-day and 124-day tenors. Subscription and allotment reached N1.015 trillion and N897.19 billion, respectively, with stop rates set at 25.50% and 25.99%. In the secondary market, the average yield on Nigerian OMO bills contracted by 2 bps to 24.8%. #OMO Bills Yield Eased as CBN Offered 25.99% on 124-Day Nigeria’s Borrowing Cost Eased as African Eurobonds Rally
