CBN mops up N3.46T in OMO and Treasury Bills auctions as liquidity surges
The CBN allotted approximately N3.46 trillion across its November 3 OMO and November 4 Treasury Bills auctions, with OMO bills dominating at N2.95 trillion (85% of total). Investors bid N5.57 trillion against a combined N2.30 trillion offer—2.42 times oversubscribed.
OMO stop rates held at 17.67-17.77% across 119-133 day tenors, while Treasury Bills stop rates stayed unchanged at 15.40% (91-day), 15.79% (182-day), and 15.80% (364-day) despite 2.56x subscription. The CBN allotted only N509.41 billion of the N800 billion Treasury Bills offer, leaving N1.54 trillion in bids unfilled.
The 192-200 basis point gap between OMO and Treasury Bills yields persists. Secondary-market yields jumped—three-month benchmark rose 130bps to 17.40%, six-month up 122bps to 17.85%. This follows elevated banking-system liquidity: SDF balances exceeded N7.72 trillion on November 3 after N2.016 trillion in OMO maturities settled. FMDA projects N13.79 trillion in November liquidity inflows from maturities, government allocations, and T-bill repayments.
The Debt Management Office has raised N1.82 trillion against N2.95 trillion offered in Q4 2026 T-bill auctions so far. With an MPC meeting scheduled this month, the CBN's policy stance and subsequent auction decisions will signal whether aggressive liquidity absorption continues.
With OMO rates at 17.7% versus Treasury Bills at 15.8%, where does your short-term capital earn better returns ahead of the next MPC meeting?