The price quoted for immediate settlement of the securities in the main market auction held on Wednesday is 22.30%, which is the current rate at which the Central Bank of Nigeria (CBN) sells OMO bills instruments to investors.
Based on information acquired by Bizwatch Nigeria, the CBN’s earlier auction rate of 22.33% on its one-year OMO bills was reduced to the spot rate given.
The rate has gradually decreased from 22.43%, following a similar pattern to the Treasury bill auctions held by the top banks. According to CardinalStone Partners Limited’s market update on Wednesday, the CBN offered N500 million across all standard maturities at the main OMO auction.
As projected by some Broadstreet analysts, demand or subscription level was relatively healthy, with a bid to offer 1.97x and a bid to cover 1.0x. Overall, stop rates for 188-day and 363-day instruments closed at 19.48% and 22.30% respectively, according to auction results cited by CardinalStone.
In the money market, the Nigerian Interbank offered rate fell by 149 basis points to 25.68%, reflecting an improvement in liquidity, Cowry Asset Management said in its investors note.
However, key money market rates, such as the open repo rate (OPR) and overnight lending rate (OVN), rose by 0.73% and 0.89%, respectively. closing at 26.36% and 27.14%, respectively.
