Investors pour N6.3tn into OMO as yields fall below 20%
The Central Bank of Nigeria received N6.3 trillion in subscriptions for Open Market Operation bills, far exceeding the N1 trillion offered. Despite a six-basis-point drop in yields on the 68-day note, demand remained exceptionally high.
Investors poured N6.3 trillion into the Central Bank of Nigeria's (CBN) Open Market Operation auction on Tuesday, creating more than six times the amount made available. The CBN offered N1 trillion across three tenors but received N6.31 trillion in subscriptions and allotted approximately N4.4 trillion to the market. Demand was strongest for the 154-day bill, which attracted N4.2 trillion in subscriptions against only N400 billion offered. This note cleared at a stop rate of 18.41 percent, translating to a true yield of 19.96 percent. The yield dropped from 20.64 percent at the previous auction, representing a decline of 68 basis points. Victor Ogundijo, a fixed-income trader at CardinalStone, attributed the strong appetite for CBN securities to increased interbank liquidity driven by inflows from maturing securities and coupon payments.
