CBN Sells OMO Bill at 22.43% Interest Rate to Investors

The Central Bank of Nigeria (CBN) sold OMO bills at a spot rate of 22.34% for one year securities to investors who bid for 363-day tenor at the primary market auction conducted on Wednesday.

At auction, the CBN offered N500 billion across various standard maturities. Bids amounted to N73 million for the 174-day instrument and N903.05 billion for the 363-day instrument, CardinalStone Securities Limited told investors in a note.

The OMO bill auction results, however, showed that there was no bids for the 90-day instrument. The investment firm said total sales and stop rates were N73 million at 19.64% for the 174-day instrument.

The CBN sold N499.27 billion worth of 363 day OMO bills at 22.34% to market participants at the auction.  In the secondary market, the average yield dipped by 1bp to 21.5% in the OMO bills segment due to thin transaction recorded.

Meanwhile, interbank rates diverged as the open repo rate declined by 9 basis points while the overnight lending rate advanced by 192 basis points to close at 31.23% and 32.00%, respectively. #CBN Sells OMO Bill at 22.43% Interest Rate to Investors>>>Investors Get 21.50% Interest Rate on OMO Bills
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