The average yield on Nigerian Open Market Operation (OMO) bills dropped by two basis points to around 24.8%, as investors increased demand following Thursday’s Central Bank of Nigeria (CBN) auction.
OMO bills continue to offer the most attractive short-term returns in the local market, especially as easing inflation has widened real interest rates to approximately 5.62%, while the naira maintains relative stability.
In contrast, Treasury bill yields have sharply declined, but strong interest in OMO instruments persisted during the auction. Eligible participants, including foreign portfolio investors and Nigerian banks, staked more than N1 trillion across short-term offerings.
CBN initially offered N600 billion in 89-day and 124-day tenors, but high demand pushed total subscriptions to N1.015 trillion, with allotments reaching N897.19 billion. Stop rates were pegged at 25.50% and 25.99%, respectively.
Market analysts noted limited secondary market activity post-auction as focus shifted toward OMO instruments, which remain critical for foreign investment inflows and liquidity management.
