Investors chase N12.14 trillion in OMO bills as CBN rates fall
The Central Bank of Nigeria (CBN) closed September with two Open Market Operations (OMO) auctions that attracted N12.14 trillion in bids... The post Investors chase N12.14 trillion in OMO bills as CBN rates fall appeared first on Nairametrics .
In September, the Central Bank of Nigeria (CBN) held two Open Market Operations (OMO) auctions that saw investors submit an impressive N12.14 trillion in bids for N3.4 trillion offered across the sessions. The CBN ultimately allotted around N6.94 trillion, with subscriptions being about 3.57 times the amount offered and eventual allotments exceeding twice the original offer.
This demand remained strong even as the Monetary Policy Rate was reduced by 350 basis points to 23%, and the CBN intensified liquidity withdrawals. The September 24 auction garnered particular attention, with investors submitting N5.741 trillion against N900 billion in instruments. Subsequent auctions in September saw even higher subscriptions - N6.399 trillion against N2.5 trillion offered - for securities with longer tenors.
Analysts attribute this strong investor demand to the relative attractiveness of Nigerian fixed-income yields compared to global rates and the stability of the naira. Higher participation and abundant liquidity in the financial system are also factors supporting OMO demand even as rates decline.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
