Yields on Nigerian Open Market Operation (OMO) bills fell marginally on Thursday, as investors showed strong demand for the Central Bank of Nigeria’s latest primary auction.
The CBN auctioned ₦600 billion worth of bills across 89-day and 124-day tenors, attracting subscriptions totaling ₦1.015 trillion. The apex bank allotted ₦897.19 billion, with stop rates of 25.50% and 25.99%, respectively.
Market analysts noted that foreign portfolio investors and local deposit money banks accounted for the bulk of the bids, reinforcing OMO bills as one of the most attractive short-term investments in Nigeria’s financial market.
Following the auction, the average yield on OMO bills in the secondary market declined by two basis points to 24.8%. Investment banks observed that trading activity remained subdued in treasury bills, as investor attention focused heavily on the OMO segment.
With Nigeria’s inflation rate easing and the naira maintaining relative stability, real returns on OMO bills have improved significantly, currently offering an estimated positive yield of 5.62%. Analysts expect continued foreign investor participation, which could further strengthen FX liquidity and bolster the local currency.
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