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

The Central Bank of Nigeria (CBN) offered N2.628 trillion in Open Market Operations (OMO) payments at its October 22, 2026 public sale, exceeding its initial N2 trillion provide by N628.52 billion, or 31.43%, as stop rates elevated throughout each tenors, signaling resumption of rates enhance.

According to the CBN’s public sale outcomes, buyers submitted bids price N2.728 trillion, representing 1.36 instances the quantity initially supplied.

The 180-day invoice attracted the biggest share of demand and allotments, whereas the shorter 138-day invoice was undersubscribed regardless of recording the next stop charge.

CBN allots N2.63 trillion OMO Bills:

The CBN allotted N1.773 trillion to the 180-day OMO invoice, considerably exceeding the N1 trillion initially supplied for that tenor. The instrument attracted subscriptions of N1.853 trillion, representing 1.85 instances its provide.

The 138-day invoice attracted N875.24 billion in subscriptions, under its N1 trillion provide, with the CBN allotting N855.24 billion.

• The 180-day invoice cleared at a stop charge of 17.14% and matures on April 20, 2027.
• The 138-day invoice recorded the next stop charge of 17.63% and matures on March 9, 2027.
• The CBN accepted roughly 96.35% of whole bids by worth, leaving N99.54 billion unallotted.
• The longer invoice accounted for about 67.92% of whole subscriptions.
• The 138-day stop charge was 49 foundation factors larger than the 180-day charge, indicating that the shorter instrument attracted the next accepted charge regardless of weaker subscription demand.
• Bids on the 180-day invoice ranged from 16.79% to 18.88%, representing a 209-basis-point unfold.

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

OMO Stop Rates resume upward development:

The October 22 public sale recorded larger stop rates than the earlier OMO sale on October 6. At that public sale, the CBN allotted roughly N3.31 trillion towards an initial N2 trillion provide.

The earlier public sale cleared at 17.22% for the 147-day invoice and 16.92% for the 182-day invoice, with each rates under these recorded on September 29.

• The newest 138-day stop charge of 17.63% was 41 foundation factors above the October 6 rate for the 147-day bill.
• The 180-day stop charge of 17.14% was about 20 foundation factors above the earlier 182-day charge.
• The September 29 auction recorded stop rates of 17.24% and 16.94% for the comparable shorter and longer devices.
• At the October 14 Treasury invoice public sale, the 364-day stop charge elevated by 5 foundation factors to fifteen.90%, its first rise since August.

Although the tenors will not be equivalent, the comparability means that the current downward motion in OMO stop rates has paused.

OMO public sale rates had declined after CBN’s Monetary Policy Committee (MPC) introduced 350-basis-points charge lower in September. However, the October 22 public sale outcomes point out larger stop rates, suggesting that charge enhance might have resumed.

OMO Sales exceed projected maturities:

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

The N2.628 trillion allotted on October 22 exceeded that projected maturity quantity by roughly N562 billion in face worth.

With stop rates growing regardless of substantial banking system liquidity, subsequent auctions will present additional indications of whether or not buyers proceed demanding larger rates or whether or not stronger demand pushes accepted rates decrease.