CBN raises N1.7trn from Oversubscribed OMO Bills Auction

Central Bank of Nigeria (CBN) raised N1.7 trillion from its oversubscribed open market operations conducted on Monday, according to outcome from its OMO bills sales.

The action precedes market expectation of N1.04 trillion inflow from the 23-Dec-25 OMO maturity. In an effort to replace the securities, the CBN floated N600 billion auction across short and mid tenors.

The auction was significantly over subscribed given about N2.6 trillion excess liquidity in the financial system.

The liquidity position was expected to increase due to  N281.53 billion from the 25-Dec-25 Treasury bills maturity, and N354.46 billion in bond coupon payments from the Jun-32, Jun-33, Jun-38 and Jun-53 bonds,
The CBN Monday offer was split into N300 billion each 162-day and 211-day OMO bills.  

Demand was robust as total subscriptions printed at about N2.4 trillion as foreign portfolio investors and banks maintain solid appetite for the naira assets.

The Apex Bank allotted about N1.7 trillion across the two bills, at stop rates of 19.38% and 19.42%, respectively, according to auction results.
In the secondary market, the Nigerian Treasury bills closed on a slightly bullish note as yield declines were observed across the curve, particularly the 17-DEC (-13bps) paper.

Overall, the average yield across the bourse declined by 3bps to close at 17.72%.