Investors chase CBN’s 20% OMO yield with N4.93 trillion bids

On Thursday, August 13, 2026, the Central Bank of Nigeria (CBN) conducted an OMO auction that saw an overwhelming response in the form of N4.93 trillion in total subscriptions, far exceeding the N600 billion available across 103-day and 138-day bills. This auction, part of a series of highly active OMO sterilisation rounds, underscores the immense appeal of OMO yields as compared to alternative fixed-income options.

Despite the bank allotting N2.60 trillion, a figure more than quadruple the overall offer, the demand for these bills persisted, signaling the ongoing allure of this risk-free investment avenue. The 103-day bill maturing on November 24, 2026, was particularly popular, with subscriptions reaching an impressive N1.268 trillion, representing an oversubscription rate of over 4.2 times its N300 billion offer.

The stop rate of 20.39% for this bill further cemented its status as a highly sought-after investment. The 138-day bill, while drawing even greater interest, was allotted at a lower stop rate, indicating the bank's efforts to balance the supply and demand dynamics. This auction pattern is reflective of a broader trend observed throughout 2026, where CBN's OMO auctions have consistently drawn huge demand and been issued larger allocations.

As investors continue to flock to OMO bills, the expectation is that the yield gap between Treasury Bills and OMO will narrow, making this instrument an increasingly attractive option for both institutional and retail investors in Nigeria's current high-rate environment.