The Central Bank of Nigeria (CBN) reduced the spot rate on OMO Bills by 2 basis points in the primary market auction on Tuesday, as investors bet heavily on the naira asset.
According to Bizwatch Nigeria, the two auctions were a failure since the authority failed to allocate the open market operations instrument to investors who bid.
The apex bank has recently reduced interest rates on government short-term borrowing instruments in response to changing market dynamics.
At today’s OMO auction, the CBN offered N500 billion across conventional maturities. The CBN sold ₦758.00 billion of OMO notes, focusing solely on long-dated paper.
The stop rate for the one-year OMO bills declined by 2 basis points to settle at 21.87%, according to auction results. In the secondary market, the average yield expanded by 2bps to 24.5% in the OMO bills segment due to selloffs.
