Overnight Rate Rises as CBN Sells N174b OMO Bills

By Dipo Olowookere

The Central Bank of Nigeria (CBN) on Friday sold a total of N173.55 billion worth of treasury bills via the open market operations (OMO).

This was as the overnight and the open buy back (OBB) rates broadly increased at the close of business yesterday.

Business Post reports that by the time the money market closed on Friday, the Overnight (O/N) rate increased to 32.58 percent from 11.96 percent on Thursday.

In addition, the Open Buy Back (OBB) went up to 30.83 percent yesterday from 11.83 percent the previous day.

It was observed that the rise in the rates was influenced by the debits for bond auction and the significant OMO T-bill sale by the apex bank on Friday.

At the T-bills market, which was slightly bullish, the central bank continued to drop the rates by 5 basis points.

The CBN sold the 90-day bill worth N140 million at 15.90 percent stop rate, while the 209-day instrument was sold for N173 billion at 17.65 percent.