The Central Bank of Nigeria (CBN) sold N3.85 trillion worth of Open Market Operations (OMO) bills at its auction on Tuesday, November 10, 2026, more than double its initial offer of N1.5 trillion. Investors subscribed N4.07 trillion in total, producing a bid-to-cover ratio (total bids divided by amount allotted) of 2.71 times.

The result signals sustained investor appetite for high-yielding government securities, particularly longer-dated instruments. The allotment of N3.854 trillion across three tenors represented 2.57 times the amount originally offered, in what marks the apex bank's continued effort to mop up excess liquidity from the financial system.

Total sales exceeded the offer by N2.35 trillion, making the auction another significant liquidity management operation by the CBN. Demand concentrated overwhelmingly on the longest tenor on offer.

Where did the demand land?

The 329-day instrument attracted the highest subscription of the auction at N2.82 trillion, accounting for approximately 69.3 per cent of total bids received. The CBN offered N500 billion on this tenor and allotted N2.79 trillion, rejecting roughly N30 billion of bids, at a stop rate (the rate at which the auction closes) of 15.99 per cent.

The 252-day instrument also drew subscriptions above its offer. Investors bid N791.5 billion against N500 billion offered, and the CBN sold N783.5 billion at a stop rate of 16.68 per cent.

Only the 154-day instrument fell short of its offer. Subscriptions stood at N457.89 billion against N500 billion on offer, and the apex bank allotted N280.76 billion at a stop rate of 17.44 per cent.

What does the stop-rate structure show?

The auction results revealed a declining stop-rate structure across the three maturities. The 154-day instrument recorded the highest rate at 17.44 per cent, followed by 16.68 per cent on the 252-day bill and 15.99 per cent on the 329-day instrument.

Despite the differences in stop rates, true yields (the effective annualised return accounting for the discount price) remained relatively close across the instruments. They settled at 18.83 per cent for the 154-day bill, 18.85 per cent for the 252-day bill and 18.68 per cent for the 329-day bill.

The compression of true yields into a narrow band of 18.68 per cent to 18.85 per cent shows investors priced the three tenors almost identically on an effective-return basis.

Why did investors favour the longest tenor?

The strong preference for the 329-day instrument, which absorbed nearly 70 per cent of all bids, suggests investors are willing to commit funds for longer periods to secure prevailing returns. The pattern reflects expectations of possible changes in monetary conditions, with market participants locking in current yields before any shift.

The development comes as investors continue to position their portfolios around attractive fixed-income returns. Demand concentrated on longer-dated instruments offering relatively competitive yields.

The scale of the allotment, particularly on the longest tenor, also highlights the CBN's willingness to absorb liquidity beyond its initial auction target. By selling N3.854 trillion against a N1.5 trillion offer, the central bank removed substantially more naira from the banking system than it originally signalled.

What does the auction mean for liquidity management?

The operation ranks among the CBN's larger liquidity mop-up exercises, measured by the gap between the amount offered and the amount sold. The N2.35 trillion overshoot indicates the central bank matched supply to demand rather than holding to its announced programme size.

For fixed-income investors, the auction confirms that OMO bills (short-term securities the CBN issues to control money supply) remain a preferred vehicle at current yield levels. The near-uniform true yields across tenors suggest the market sees little additional compensation for extending maturity, reinforcing the concentration of demand in the one-year instrument.