Reloaded News Desk
Investors submitted bids worth ₦6.1 trillion for Central Bank of Nigeria Open Market Operation bills last week, more than six times the ₦1 trillion the apex bank initially offered.
The CBN ultimately allotted ₦2.3 trillion to successful bidders.
The auction covered 68-day, 152-day and 180-day instruments. No allocation was made on the 68-day bill, while the 152-day and 180-day instruments recorded stop rates of 17.29 per cent and 16.99 per cent respectively.
The heavy subscription came shortly after the CBN reduced its benchmark interest rate, prompting investors to seek opportunities to lock in yields on naira-denominated fixed-income instruments.
The auction therefore provides another indication of the continued demand for relatively attractive naira assets even as monetary policy begins moving towards lower interest rates.
For the wider economy, the development will be closely watched alongside the CBN’s broader efforts to manage liquidity, inflation and the transmission of monetary policy.
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