Rates Decline as Investors Double Down on CBN OMO Bills
Investors doubled down on OMO bills investment in 2025; data showed significant oversubscription at the primary market auction yesterday. The Central Bank of Nigeria (CBN) offered investors N500 billion worth of OMO bills as part of liquidity management and efforts to attract foreign inflows.
The CBN’s first OMO auction of the year was oversubscribed by N1.1 trillion, with stop rates for 350-day and 364-day bills at 23.81% and 23.84%, respectively. In December, OMO bill spot rates were reduced to 23.93% for the 258-day standard tenor, while the 365-day was priced at 23.95% at the last auction.
In the secondary market, trading activities on OMO bills were bearish as spot rates continued to decline over time even while inflation kept rising. At the close of the trading session, the average yield expanded by 7 basis points to 27.6% in the OMO segment, while the market anticipated investors would increase bargain hunting due to strong liquidity in the money market. French Embassy to Empower 1,500 Youths on Agric. Dev’t in Kano
