In a significant move, the Central Bank of Nigeria (CBN) raised approximately N3.46 trillion through its Open Market Operations (OMO) and Nigerian Treasury Bills (NTB) auctions held on November 3 and 4, 2026. The OMO auction alone accounted for about N2.95 trillion, representing 85.3% of the total allotment. Investor interest was notably high, with bids totaling around N5.57 trillion against a combined offer of N2.30 trillion, showcasing a bid-to-cover ratio of approximately 2.42 times.
This surge in demand comes against a backdrop of elevated banking-system liquidity, with balances exceeding N7.72 trillion in the Standing Deposit Facility. The CBN's decision to maintain Treasury Bills stop rates, despite overwhelming demand, signals a cautious approach to monetary policy. The rates for the 91-day, 182-day, and 364-day Treasury Bills remained unchanged at 15.40%, 15.79%, and 15.80%, respectively, even as secondary-market yields have risen significantly. This divergence highlights a pricing gap that could influence investor behavior in both the primary and secondary markets.
Looking ahead, market participants will closely monitor the CBN's upcoming Monetary Policy Committee meeting for further insights into its policy stance. With projections of approximately N13.79 trillion in liquidity inflows in November, driven by OMO maturities and government allocations, the CBN may continue its aggressive liquidity absorption strategy. Investors should watch for how these dynamics will affect short-term yields and overall market sentiment in the context of both local and global financial landscapes.