CBN sells N2.63 trillion OMO bills, N629 billion above initial offer, as stop rates rise

The Central Bank of Nigeria (CBN) sold N2.628 trillion in Open Market Operations (OMO) bills at its October 22, 2026 auction, exceeding its initial N2 trillion offer by N628.52 billion, or 31.43%, as stop rates increased across both tenors, signaling resumption of rates increase.

According to the CBN’s auction results, investors submitted bids worth N2.728 trillion, representing 1.36 times the amount initially offered.

The CBN allotted N1.773 trillion to the 180-day OMO bill, substantially exceeding the N1 trillion initially offered for that tenor. The instrument attracted subscriptions of N1.853 trillion, representing 1.85 times its offer.

The 138-day bill attracted N875.24 billion in subscriptions, below its N1 trillion offer, with the CBN allotting N855.24 billion.

For the 138-day bill, bids ranged from 17.18% to 17.72%, indicating a narrower range of submitted rates.

The October 22 auction recorded higher stop rates than the previous OMO sale on October 6. At that auction, the CBN allotted approximately N3.31 trillion against an initial N2 trillion offer.

The earlier auction cleared at 17.22% for the 147-day bill and 16.92% for the 182-day bill, with both rates below those recorded on September 29.

Although the tenors are not identical, the comparison suggests that the recent downward movement in OMO stop rates has paused.

OMO auction rates had declined after CBN’s Monetary Policy Committee (MPC) announced 350-basis-points rate cut in September. However, the October 22 auction results indicate higher stop rates, suggesting that rate increase may have resumed.

The latest OMO sale comes against a backdrop of substantial banking system liquidity and maturing CBN securities. The Financial Markets Dealers Association (FMDA) projected N2.067 trillion in OMO maturities for the week beginning October 19.

The N2.628 trillion allotted on October 22 exceeded that projected maturity amount by approximately N562 billion in face value.

With stop rates increasing despite substantial banking system liquidity, subsequent auctions will provide further indications of whether investors continue demanding higher rates or whether stronger demand pushes accepted rates lower.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

FGN bonds attract N1.75 trillion in bids, as DMO allots N1.21 trillion

CBN offers N2 trillion OMO bills as banks hold N6 trillion at deposit window

Nigeria’s 10-year bond yield rises as US and African benchmarks decline