Interest Rate on OMO Bills Sinks to 22.30%

The Central Bank of Nigeria (CBN) sells OMO bills instrument to investors at spot rate of 22.30%, which is the price quoted for immediate settlement of the securities in the primary market auction conducted on Wednesday.

The spot rate offered on its one year OMO bills decline from previous rate of 22.33% in the previous auction by the CBN, according to data gathered by MarketForces Africa.

The rate has dropped successively from 22.43%, a similar pattern seen in the apex bank Treasury bills auctions.  At the main OMO auction, the CBN offered N500 million across all standard maturities; CardinalStone Partners Limited told investors in its market update on Wednesday. 

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. #Interest Rate on OMO Bills Sinks to 22.30%

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