Local and foreign investors flocked to Nigeria’s OMO bills auction on Tuesday, placing bids worth N1.45 trillion. This strong demand was driven by high-interest rates in the fixed income market.
The Central Bank of Nigeria (CBN) offered N300 billion in OMO bills across various maturities, but the market’s appetite was particularly strong for longer-term instruments. This led to a bid-to-offer ratio of 4.83x, indicating significant oversubscription.
The CBN ultimately sold N1.447 trillion in OMO bills at a stop rate of 24.28%. All of the allocated funds were for the longest-term tenor.
Market participants anticipate another Treasury bill auction on Wednesday, with N513.43 billion worth of bills up for grabs.
