CBN's OMO Auction Sees N4.93 Trillion in Bids
On August 13, 2023, the Central Bank of Nigeria (CBN) conducted an Open Market Operations (OMO) auction, offering N300 billion each in 103-day and 138-day OMO bills. Investors submitted bids totaling N4.93 trillion, significantly exceeding the N600 billion on offer.
The CBN allotted N2.60 trillion, reflecting strong demand for short-term securities despite previous liquidity management efforts. The auction indicates a competitive market for attractive short-term investment opportunities, with OMO bills serving as a key liquidity management tool for the CBN.
In the preceding week, the CBN injected N5.21 trillion into the banking system, including an N2.48 trillion OMO repayment. The benchmark 364-day Treasury Bill stop rate rose to 17.59% just before the OMO auction, highlighting the significant yield difference between OMO securities and Treasury Bills.
Investors must consider factors such as tenor, liquidity, and reinvestment risk when evaluating returns.
Plus234Feed summary based on reporting from The Will. Read the original report below.
Read full article
Continue on The Will
Enjoy this article?
Get the weekly Nigerian roundup — top stories, NPFL, naira. One email, Sunday morning.
Related Stories
Strong Demand for CBN OMO Bills Reaches N4.93tn
CBN Reopens OMO Market, Attracts Investor Interest
CBN Reopens OMO Market to Individuals and Corporates
Treasury Bill Yields Drop Ahead of CBN's N700bn Auction
Investors Weigh REITs Against OMO Bills in Nigeria
OMO Maturities Rise 31% to N2.94 Trillion This Week
Get Plus234Feed on messaging apps
Same headlines, delivered where you already scroll.
