CBN offers N800 billion Treasury Bills Wednesday as banks hold N6 trillion

The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), will offer N800 billion in Nigerian Treasury Bills (NTBs) on Wednesday, October 28, 2026, as banks’ placements at the CBN’s Standing Deposit Facility (SDF) reached N6.98 trillion on Tuesday, October 27.

This is according to the CBN’s invitation to tender and liquidity data from the Financial Markets Dealers Association (FMDA), which projects N2.813 trillion in inflows into the financial system this week.

The auction comes amid substantial liquidity following the settlement of N2.132 trillion in Open Market Operation (OMO) maturities and N53.493 billion in primary market maturities on Tuesday, potentially supporting demand for government securities.

The CBN’s auction notice shows that the N800 billion Treasury Bills offer comprises three tenors, with the 364-day instrument accounting for the largest portion.

The securities will be issued through a Dutch auction, while the FMDA expects maturing instruments and coupon payments to provide additional liquidity during the week.

Corporate bond coupon payments account for another N10.92 billion, completing the expected inflows from maturing securities and interest payments.

However, OMO maturities are N341 billion higher than the N2.067 trillion recorded in the preceding week.

FMDA also reported that system liquidity increased by 10.39% week-on-week to N6.936 trillion in the week ended October 23, before additional inflows expected this week.

The October 28 Treasury Bills auction coincides with N130.72 billion in maturing Treasury Bills, with settlement scheduled for October 29.

The repayment will return funds to investors and financial institutions, potentially supporting reinvestment demand during the auction.

The substantial inflows from OMO maturities could also influence liquidity conditions beyond the Treasury Bills auction.

The 364-day Treasury Bill accounts for N600 billion, or 75%, of the October 28 offer, reflecting the government’s concentration of planned issuance on the longest available tenor.

Demand for one-year Treasury Bills has remained strong in recent auctions, even as stop rates declined from earlier highs.

The auction will test whether strong demand for government securities continues amid elevated banking-system liquidity and substantial expected maturities.

However, the final allotment and stop rates will depend on actual subscriptions and the CBN’s broader liquidity-management operations.

Strong demand could give the DMO room to lower stop rates further, while additional liquidity withdrawals or higher investor yield expectations could limit downward pressure on rates.

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