The Central Bank of Nigeria (CBN) on June 8, mopped up N1.689 trillion through an Open Market Operations (OMO) auction dominated by strong investor demand for longer-dated securities.
This is according to OMO auction results published by the CBN.
The apex bank offered a combined N600 billion across two instruments — an 8-day OMO bill and a 134-day OMO bill.
However, investor demand surged to N1.689 trillion, nearly three times the amount offered.
The CBN accepted all subscriptions received across both instruments, signalling a continued willingness to absorb excess liquidity from the financial system amid ongoing monetary tightening efforts.
The June 8 auction results shiw that the 8-day OMO bill, maturing on June 16, 2026, attracted subscriptions of just N85 billion against an offer size of N300 billion, representing an undersubscription of N215 billion.
Subscription on the 8-day paper amounted to only 28.3% of the amount offered, indicating weak investor interest in very short-term placements.
Despite the weak demand, the CBN allotted the entire N85 billion subscribed.
The 8-day instrument recorded bid rates ranging from 21.50% to 21.89%, with a stop rate of 21.89%.
By contrast, the 134-day OMO bill, maturing on October 20, 2026, attracted N1.6045 trillion in subscriptions against an offer size of N300 billion.
The longer-tenor instrument was oversubscribed by N1.3045 trillion, representing a subscription level of approximately 534.8% of the amount offered.
The CBN allotted the entire N1.6045 trillion subscribed, far exceeding the initial offer size.
Bid rates on the 134-day bill ranged from 19.94% to 20.02%, with a stop rate of 20.02%.
The longer-dated bill alone accounted for approximately 95% of total subscriptions recorded during the auction.
The 8-day instrument cleared at a yield of 187 basis points higher than the 134-day bill, yet demand remained overwhelmingly concentrated on the longer tenor.
