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.

FMDA projects N2.81 trillion inflows:

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.

• The auction comprises N100 billion in 91-day bills, N100 billion in 182-day bills and N600 billion in 364-day bills, representing 12.5%, 12.5% and 75% of the total offer, respectively.
• OMO maturities are expected to contribute N2.408 trillion, accounting for approximately 85.6% of the N2.813 trillion projected weekly inflows.
• Federal Government bond coupon payments are expected to provide N263.58 billion, while Treasury Bills maturities will contribute N130.72 billion.

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

• The projected N2.813 trillion inflow is slightly below the previous week’s N2.858 trillion, mainly because no Federation Account Allocation Committee (FAAC) distribution is recorded for this week, compared with N2.43 trillion previously.

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.

CBN Auction could absorb N669 billion:

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 N800 billion advertised offer exceeds the scheduled Treasury Bills maturity of N130.72 billion by approximately N669.28 billion.
• If the DMO allots the full advertised amount, the auction would absorb N669.28 billion more than the funds released through the Treasury Bills maturity alone.
• Banks’ SDF placements of N6.98 trillion as of October 27 indicate substantial funds deposited with the CBN ahead of the auction.
• The CBN’s OMO operations could also absorb part of the liquidity returning to the financial system through maturing securities.
• The actual impact on banking-system liquidity will depend on investor subscriptions, final allotments and the extent to which investors reinvest proceeds from maturing instruments.

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

One-Year Bills dominate CBN offer:

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.

• At the October 7 auction, the DMO allotted N968.47 billion against an advertised offer of N900 billion.
• The 364-day stop rate declined to 15.85%, reflecting the lower yields recorded on longer-tenor government securities.
• Nairametrics also reported that DMO rejected approximately 74% of N1.032 trillion total subscriptions, accepting only N269.06 billion at the October 14 NTB auctions.
• investors submitted N1.683 trillion in bids for the one-year bill at the October 7 auction, highlighting demand for longer-dated instruments.
• The October 28 offer provides another opportunity for investors to reinvest proceeds from maturing securities, particularly through the 364-day instrument.

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.