The Central Bank of Nigeria (CBN) on Monday conducted an Open Market Operation (OMO) auction, offering short-dated securities including an 8-day tenor — one of the shortest maturities introduced this year.
The apex bank placed ₦600 billion worth of OMO bills on offer, split evenly between instruments maturing in eight days and 99 days.
Strong Investor Appetite
Investor demand significantly exceeded the offer size, with total subscriptions reaching ₦2.04 trillion. The bulk of the bids — approximately ₦1.98 trillion — targeted the 99-day instrument scheduled to mature in May.
In response to robust participation, the CBN allotted ₦1.35 trillion across the two maturities, indicating sustained liquidity and strong appetite for short-term risk-free instruments.
Stop rates were fixed at 22.39 percent for the 8-day bill and 19.48 percent for the 99-day bill, according to investment banking sources.
Secondary Market Reaction
Activity in the secondary OMO market closed on a positive note, with average yields declining by 5 basis points to settle at 20.59 percent.
Market participants are also anticipating inflows of approximately ₦319.54 billion from maturing OMO bills later in the week, which could further influence liquidity conditions and short-term rates.
Analysts note that the introduction of ultra-short tenors reflects the CBN’s tactical liquidity management approach amid evolving monetary conditions.
 on Monday conducted an Open Market Operation (OMO) auction, offering short-dated securities including an 8-day tenor — one of the shortest maturities introduced this year.){kind=link}