CBN Attracts N6.1 Trillion in OMO Bills Subscription

Following a 350-basis-point reduction in Nigeria’s benchmark interest rate, the Central Bank of Nigeria (CBN) conducted an open market operation, offering N1 trillion in OMO bills across three tenors: 68-day, 152-day, and 180-day maturities. This offer attracted N6.1 trillion in subscriptions, which is approximately 6.1 times the amount offered.

The CBN ultimately allotted N2.3 trillion, with no allotment recorded for the 68-day instrument. The 152-day and 180-day bills cleared at rates of 17.29% and 16.99%, respectively.

Analysts noted that the strong demand for OMO securities, despite falling yields, reflects investors' willingness to secure current returns before potential further monetary-policy adjustments lower short-term rates. The OMO bill settlement reduced excess liquidity in the financial system, leading to eased money market rates.

Upcoming maturities and bond coupons are expected to enhance liquidity in the financial markets. Cowry Asset Limited indicated that secondary-market yields may face further downward pressure due to significantly exceeding demand.