CBN Mops up N1.19trn from OMO Bills, Rejects Excess Bids

The Central Bank of Nigeria (CBN) raised N1.19 trillion from two open market operations (OMO) auctions last week as it sought to rein in excess liquidity and sustain foreign exchange inflows. The short-term instruments, which offered attractive yields, drew strong interest from offshore investors and local banks, with total subscriptions hitting N1.57 trillion — more than twice the amount offered.

Analysts said the higher rates reflected the apex bank’s strategy of luring foreign portfolio inflows despite a slowdown in headline inflation. The auctions, which covered 83-day bills worth N300 billion and 84-day bills totalling N400 billion, closed with stop rates of 26.49 per cent and 26.50 per cent, respectively.

Despite robust demand, the CBN rejected a significant portion of bids, raising N1.19 trillion and leaving out the balance. Market watchers expect another auction this week, with N459.60 billion worth of maturities due.

In the secondary market, yields on OMO bills eased slightly as investors sought placements after missing out at the auction, with the average yield dipping by three basis points to 25.5 per cent.