Rates Top 20% as CBN Sells N2.7trn in OMO Bills to Investors
The Central Bank of Nigeria (CBN) conducted an open market operation on Monday, offering N600 billion in OMO bills for subscription across standard tenors.
Stop rates on the OMO bills sold to eligible investors that participated in the primary market auction topped 20%, with N2.67 trillion in allotments.
The Apex Bank opened 99-day OMO bills worth N300 billion for investors’ subscription at the primary market auction. It also offered N300 billion worth of 134-day OMO bills for subscription at the auction.
The maturity dates for the shorter OMO bills are September 29, 2026, and November-03-2026, according to details from the auction results released by the CBN.
Analysts said the auction is part of the CBN’s liquidity management efforts to remove excess liquidity in the banking system and curtail lenders’ ability to create credit that could increase inflation.
Total subscription at the auction was strong due to high liquidity in the financial system when the auction opened. According to the auction results, the CBN received a total of N2.7 trillion in bids for the short-term investment instruments.
The breakdown showed investors staked N658 billion against 91-day bills and N2.052 trillion chased 134-day OMO Bills. The CBN allotted to match subscription for 99-day OMO bills.
However, the authority allocated only N2.016 trillion to 134-day bills, out of a total of N2.052 trillion in bids received at the auction, rejecting the remaining balance. In total, the CBN raised about N2.7 trillion across both papers, at stop rates of 20.40% and 20.02%, respectively. Excess Liquidity Expands by 37% as Banks Lock N5trn in SDF
