CBN’s latest OMO auction sees lower stop rates as subscriptions hit N1.915 trillion 

Total subscriptions reached N1.915 trillion, indicating continued confidence in CBN’s liquidity management instruments.

However, compared to the January 31, 2025, auction, demand was noticeably lower.

Despite this, the central bank increased the total volume of successful bids, selling N1.395 trillion worth of OMO bills, a 39.5% increase from the N1 trillion sold in January.

In the latest auction, the CBN offered two subscription tenors: a 355-day bill and a 362-day bill. Both instruments had an initial offer size of N300 billion each. Investor interest was stronger for the longer-duration 362-day bill, where total subscriptions soared to N1.499 trillion, far exceeding the amount on offer.

Meanwhile, the 355-day bill saw a relatively lower subscription level of N415.85 billion, though still oversubscribed.

The apex bank responded to this demand by increasing the total volume of sales. For the 355-day bill, the CBN allotted N402.85 billion, while for the 362-day bill, the total sold reached N993 billion.

This brought the total amount sold in the February auction to N1.395 trillion, marking a significant increase compared to the January auction, where only N1 trillion worth of bills were sold.

This indicates a moderation in yield expectations. These lower stop rates indicate that investors were willing to accept lower yields, possibly due to expectations of monetary policy easing or improved liquidity conditions in the financial system.

The lower subscription levels in February compared to January could suggest tightening liquidity conditions or a shift in investor allocation strategies.

This could indicate a preference for locking in relatively high yields for an extended period, potentially as a hedge against future market volatility.