OMO auction expected on N140 bn inflows

The Central Bank of Nigeria may be compelled to  hold OMO auctions in the this week, given that Instruments worth N140.9bn are expected to mature.According dealers, there will be Primary Market Auction (PMA) maturities of N33.8billion and OMO maturities of N107.1billion on the 16th of May. Consequently, yields across markets are expected to close higher when compared week-on-week.

However, investors continue to anticipate lower short-term rates as revealed in the OMO auctions held on Thursday.Dealers said 91-day, 175-day and 336-day instruments were on offer with range of bids of 11.65 per cent to 12.84per cent. All tenor instruments were oversubscribed with bid-offer ratio settling at 2.0x, 1.03x and 2.3x respectively for the 91-day with N20.0billion on offer, while subscription stood at N40.1billion,  11.72 per cent stop rate;175-day   offer of N20.0billion, with subscription at N20.7billion and stop rate of 12.77 per cent as well as  336-day  offer of N100.0billion, subscription  at N228.7billion and stop rate  of 12.82 per cent.