Investors’ demand for the Central Bank of Nigeria’s (CBN) Open Market Operation (OMO) bills surged to N6.31 trillion on Tuesday, more than six times the amount offered, even as yields continued to decline.
The CBN offered N1 trillion across three tenors but received N6.31 trillion in subscriptions and allotted about N4.4 trillion, reflecting strong appetite for the central bank’s securities as investors seek to lock funds into relatively low-risk naira assets.
The 154-day bill attracted the highest demand, with N4.2 trillion in subscriptions against N400 billion offered. It cleared at a stop rate of 18.41 percent, translating to a true yield of 19.96 percent, down from 20.64 percent at the previous auction.
The 68-basis-point decline means investors are accepting lower returns even as demand for OMO bills remains elevated.
“The improved demand was influenced by increased interbank liquidity on the back of accumulated inflows from bond coupons and OMO maturities that have been in the system,” Ogundijo said.
