The Central Bank of Nigeria (CBN) launched September 2024 with another open market operation, offering investors N500 million in OMO notes. One-year OMO bills decreased by 7 basis points at the auction, closing at 21.80%, down from 21.87% the previous week.
Last week, the CBN sold N1.63 trillion in OMO notes to investors, primarily deposit money banks and international portfolio investors, at reasonable rates. Reflecting the need to increase foreign exchange inflows into the economy, the CBN offered N500 billion in normal maturities, and the rate on one-year OMO notes fell once more.
Similar to the prior auction on August 27, 2024, sales only took place for the 365-day instrument, according to CardinalStone Securities Limited. Analysts reported that stop rates for the 365-day OMO bill came in lower at 21.80% compared to 21.87% at the previous auction.
In the secondary market, investors reacted to developments in the primary market auction. Investors increased their interest in OMO bills, and thus dragged yields lower. Traders said the average yield declined by 4 basis points to 22.8% in the OMO bills segment in the secondary market on Monday.
