The Central Bank of Nigeria has aggressively tightened liquidity, causing a shift in the country's macroeconomic landscape. Fixed-income analysts are advising investors to realign their portfolios towards short-dated sovereign instruments due to the high yields offered by the Central Bank's Open Market Operations. The latest primary market auction saw investor subscriptions exceed N2.5tn, with the 102-day instrument drawing N1.73tn in bids. The Central Bank allotted N1.72tn to this segment and N220.00bn to the 11-day paper, while rejecting all bids for the 39-day paper.
CBN Tightens Liquidity, Triggers Debt Shift
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