The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), will provide N800 billion in Nigerian Treasury Bills (NTBs) for auction today, November 4, 2026, as maturing securities exceed N872 billion.
According to an Invitation to Tender obtained by Nairametrics, the provide covers the 91-day, 182-day and 364-day devices, with the one-year invoice accounting for the biggest share.
The auction comes amid substantial banking-system liquidity and follows the DMO’s choice to depart most investor bids unallotted at its earlier Treasury Bills auction.
Treasury Bills provide trails maturities:
The N800 billion provide includes N100 billion every for the 91-day and 182-day Treasury Bills and N600 billion for the 364-day instrument.
- The one-year invoice subsequently accounts for 75% of the full provide, whereas the auction coincides with N872.546 billion in maturing securities scheduled for settlement today.
- The maturing securities comprise N67.677 billion in 182-day Treasury Bills and N804.869 billion in 364-day payments.
- The marketed provide is N72.546 billion beneath the quantity scheduled to mature today.
Money Market Dealers are required to submit bids by means of the CBN S4 WEB INTERFACE between 8:00 a.m. and 11:00 a.m. on November 4.
Allotment letters will likely be issued to profitable bidders on November 5, with fee due by 11:00 a.m. that day.
If your complete N800 billion provide is allotted, repayments will exceed recent issuance by N72.546 billion, leaving a internet reimbursement surplus earlier than different liquidity actions.
However, the ultimate liquidity impact will rely on the quantity really allotted, as the DMO might settle for lower than the marketed provide.
The auction additionally comes after substantial OMO maturities, which have contributed to elevated liquidity inside the banking system.
October auction left bids unfilled:
The November 4 auction mirrors the October 28 offer, when the CBN marketed N800 billion throughout the identical three Treasury Bills tenors.
- At that auction, investor subscriptions reached N1.908 trillion, equal to 2.38 occasions the marketed quantity, however the DMO allotted solely N71.16 billion.
- The October 28 allotment represented roughly 8.89% of the marketed N800 billion provide.
- The 364-day invoice attracted N1.84 trillion in subscriptions in opposition to a N600 billion provide however obtained solely N38.38 billion in allotments.
- Stop charges declined to 15.40% for the 91-day invoice, 15.79% for the 182-day invoice and 15.80% for the 364-day invoice.
- The one-year cease price declined by 10 foundation factors from 15.90%, regardless of buyers submitting bids as excessive as 18.24%.
The October 28 auction was the second consecutive sale in which most investor bids went unfilled.
At the October 14 auction, approximately 74% of bids were not allotted, whereas the one-year cease price elevated by 5 foundation factors to 15.90%.
By comparability, the October 7 auction recorded N968.47 billion in allotments against a N900 billion offer, with the 364-day cease price at 15.85%.
The newest one-year cease price of 15.80% additionally remained beneath the 16.62% recorded on the September 9 auction.
Banking liquidity helps auction demand:
Banking-system liquidity remained substantial forward of today’s Treasury Bills auction, offering a possible supply of demand for presidency securities.
- The CBN monetary information reported liquidity place exceeding N7.7 trillion on the shut of enterprise on November 3, following the settlement of N2.016 trillion in OMO maturities.
- Treasury Bills maturities of N872.546 billion scheduled for reimbursement today are greater than six occasions the N130.72 billion recorded across the October 28 auction.
- Banking-system liquidity stood at N8.59 trillion forward of the October 28 auction, supported by roughly N2.13 trillion in OMO maturities.
- At the October 22 OMO auction, the CBN raised N2.63 trillion at cease charges of 17.63% and 17.14%.
- Those OMO cease charges had been increased than the Treasury Bills cease charges recorded on the October 28 auction.
The bigger quantity of maturing Treasury Bills might help reinvestment demand as buyers obtain repayments and think about new authorities securities.
However, sturdy subscriptions don’t essentially translate into equally massive allotments, as demonstrated by the October 28 auction.
The DMO’s willingness to restrict allotments somewhat than settle for increased borrowing charges has additionally coincided with declining Treasury Bills cease charges.
Today’s auction consequence will subsequently point out whether or not selective allotments proceed as substantial maturities return funds to buyers.
