Fixed-income Turnover Soars as OMO Bills Attract N3.56tn

A significant surge in fixed-income transactions has been reported in Nigeria, with Open Market Operations (OMO) bills attracting a whopping N3.56 trillion in the first five trading days of November. This development, as revealed by THISDAYLIVE, indicates that OMO bills accounted for almost half of transactions in the market. This turnover of fixed-income transactions reached an impressive N7.37 trillion, highlighting the robustness of the market.

According to the report, the increased demand for OMO bills could be attributed to various factors such as the high liquidity in the system, expectations of a tight monetary policy stance by the Central Bank of Nigeria (CBN), and the search for yield by investors. The CBN has not yet disclosed when the OMO facility began operating at this capacity.

This development underscores the growing importance of OMO bills in Nigeria’s fixed-income market and the potential impact on the country’s economic growth. With the continued growth in fixed-income transactions, the Nigerian market is expected to attract more foreign and local investors seeking yield and stability.