CBN Raises Spot Rate on OMO Bills to 22.48%

Date:

July 1, 2024.

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Azonuchechi Chukwu.

The Central Bank of Nigeria (CBN) increased spot rate on one year open market operation (OMO) bills to 22.48% at the primary market auction (PMA), details from auction results revealed.

The uptick at the long end reversed consecutive decline in spot rate pricing on one year tenor OMO bills instruments soo investors in the recent past auctions. The apex bank had crashed spot rate offered on the OMO bills instrument to 22.30% from as high as 25% used to attract foreign investors into the financial market.

According to auction results, the CBN offered ₦150.00 billion worth of OMO bills auction across the three tenors. At the auction, investors showed no interest in short and mid tenor bills, a development similar to past experience amidst accelerating inflation rate.

There were no bids recorded for both the short- and medium-term papers, details from auction result cited by investment firm AIICO Capital Limited revealed.

Investors staked ₦295.92 billion on the long-term paper or 363-day OMO bills, significantly higher than the amount offered across standard maturities. However, the CBN allotted ₦264.33 billion at 22.480% to market participants, 18 basis points above previous spot rate.

In the secondary market, trading activities closed bearish, with selloffs seen across tenors in the OMO segment. Consequently, the average yield on OMO bills advanced by 175 basis points to 23.5% at the secondary market.(www.naija247news.com).

Chukwu Azochukwu, The Naija247news
Chukwu Azochukwu, The Naija247newshttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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