The Central Bank of Nigeria (CBN) successfully raised a total of N2.087 trillion last week through Open Market Operations (OMO) and Treasury bills, as part of its ongoing efforts to manage liquidity in the financial system. These funds were secured via two primary market auctions.
Strong Investor Interest in OMO Bills
Despite tight liquidity conditions, investor demand for OMO bills was robust. Early in the week, the CBN offered N600 billion in OMO bills, divided equally between 351-day and 365-day tenors. The auction recorded total subscriptions of N1.56 trillion, reflecting a bid-to-offer ratio of 2.6x and underscoring strong investor appetite.
The apex bank allotted the full N600 billion offered, with stop rates for the 351-day bills settling at 23.95%, down from 24.28% at the previous auction. Similarly, 361-day bills were priced at 23.98%, marking a decline from the previous stop rate of 24.28%.
Treasury Bills Attract Significant Demand
Later in the week, the CBN, through the Debt Management Office (DMO), offered N271.71 billion in Treasury bills at the primary market auction. The issuance was distributed across three maturities: N10.84 billion for 91-day bills, N8.36 billion for 182-day bills, and N256.51 billion for 364-day bills.
Investor demand remained robust, with total subscriptions reaching N907.85 billion, resulting in a bid-to-offer ratio of 3.3x. While this marked a decline from the previous auction’s bid-to-offer ratio of 4.4x, it still reflected strong interest.
The DMO allotted N527.84 billion across maturities, with N8.80 billion allocated to the 91-day bills, N7.03 billion to the 182-day bills, and N512 billion to the 364-day bills. Stop rates for 91-day and 182-day bills remained steady at 18.00% and 18.50%, respectively, while the rate for 364-day bills declined by 13 basis points to 22.80%.
 successfully raised a total of N2.087 trillion last week through Open Market Operations (OMO) and....){kind=link}