CBN sells OMO, Treasury Bills worth N2.1trn to investors

The Central Bank of Nigeria (CBN) raised N2.087 trillion from OMO and Treasury bills at the primary market auctions last week. The amount was raised at two different primary market auctions conducted last week as part of liquidity management efforts. Despite the tight funding level, investors staked a huge bet on the OMO bill offered at the beginning of the week. The CBN conducted an OMO auction where it offered instruments worth N600.00 billion, split into N300.00 billion for the 351-day and N300.00 billion for the 365-day OMO bills to investors.
Total subscription settled at N1.56 trillion, which translated to a bid-to-offer of 2.6x, signifying investors’ strong appetite. The CBN allotted exactly what was demanded for across 351-day and 361-day tenor’s bills at respective stop rates. Spot rates for 351-day OMO bills was priced at 23.95%, down from 24.28% at the previous auction. Also, 361-day OMO bills was priced at 23.98%, a decline from 24.28% at the previous auction.
On Wednesday, the Apex Bank, through the Debt Management Office, offered N271.71 billion in Treasury bills to investors at the primary market auction. The amount was split across standard maturities: N10.84 billion for the 91-day, N8.36 billion for the 182-day, and N256.51 billion for the 364-day bills.
Total subscription settled at N907.85 billion, translating to a bid-to-offer of 3.3x, compared to the previous auction where investors staked N2.55 trillion with a bid-to-offer of 4.4x. The DMO allotted NN527.84 billion across standard maturities. The DMO raised N8.80 billion from the 91-day bills sold to investors, N7.03 billion from the 182-day bills, and N512.00 billion from the 364-day allotted to investors. Details from the auction result showed that stop rates were unchanged for 91-day bills at 18.00% and 182-day was priced at 18.50%. The spot rate for 364-day Treasury bills declined by 13 basis points to 22.80% at the auction.