CBN Prices OMO Bill Expiring in 167 Days at 18.77%
The Central Bank of Nigeria (CBN) priced OMO bills expiring in 167 days at an interest rate of 18.77%, according to auction results reviewed by MarketForces Africa.
The Apex Bank mopped up N1.1 trillion from the financial system on Wednesday, selling OMO bills across short to medium tenors to eligible investors at the auction.
In the money market, the overnight lending rate fell 48 basis points to 22.25%, reflecting still-strong liquidity conditions despite the authority’s efforts to reduce excess funds in the financial system.
The system opened the day with N3.52 trillion in excess liquidity, prompting the Apex Bank to conduct an open market operation. The authority offered banks and foreign portfolio investors OMO bills across three short- to mid-tenor maturities.
OMO bills with a six-day maturity worth N200 billion were offered for subscription, alongside 104-day and 167-day maturity bills worth N200 billion each. Total demand came in strong at N1.93 trillion, chasing N600 billion OMO bills in the offer bucket.
The breakdown showed that investors bet N5 billion on the 6-day OMO bill, N10 billion on the 104-day OMO bill, and N1.09 trillion on the 167-day OMO bill.
The CBN sold a total of N1.1 trillion across standard maturities, and stop rates cleared at 21.94%, 18.45% and 18.77% for the 6-day, 104-day, and 167-day papers, respectively. #CBN Prices OMO Bill Expiring in 167 Days at 18.77% Naira Falls for Sixth Day on Regulator Choice
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