Melvin Onwubuke
The Central Bank of Nigeria sold a historical N1.056 trillion in OMO bills on Friday with the yield on the one-year bill surging to 27.3 percent as the CBN offers more, in its attempt to lure foreign portfolio inflows.
CBN governor, Olayemi Cardoso had on Thursday, promised the rate would trend higher, at the OMO auction, according to BusinessDay.
The auction saw strong investor demand for the one-year OMO bills as it was oversubscribed to the tune of N1.01 trillion, three times more than the N355 billion that was offered.
The stop rate on the one-year bill was 21.5 per cent.The stop rate on the one-year bill works out to a yield of 27.3 percent. The stop rates on the 95-day and 179-day bills hit 19 and 19.5 per cent respectively.
Recall, Cardoso had disclosed yesterday that the stop rates will edge closer to the MPR which was raised by a record 400 basis points to 22.75 per cent at the MPC meeting on Tuesday.
The CBN has had three OMO bills auctions and had mopped up N1 trillion liquidity, before this auction.
