The Central Bank of Nigeria (CBN) repaid N2.97 trillion in Open Market Operations (OMO) bills that matured on Tuesday, July 14, 2026, just one day after raising N2.54 trillion through a new auction.
This resulted in a net liquidity injection of approximately N447 billion into the banking system for the period.
Strong Demand at July 13 Auction
At the July 13 auction, the CBN offered N600 billion across three tenors but received total subscriptions of N2.55 trillion, representing an oversubscription ratio of about 4.25 times.
The 127-day bill attracted the strongest interest, drawing N1.854 trillion (3.7 times oversubscribed) and receiving an allotment of N935.32 billion at a stop rate of 20.17%.
The 8-day bill saw subscriptions of N229.58 billion and was allotted N228.90 billion at 21.89%.
The 99-day bill received N462.18 billion in bids and was fully allotted at 20.49%.
Investor Preference for Longer Tenors
The auction reinforced a clear trend of investors favouring longer-dated instruments to lock in yields. The 127-day bill alone accounted for about 73% of total subscriptions, continuing a pattern observed in recent auctions where market participants show preference for higher-yielding, longer-term securities amid the current tight monetary environment.
The CBN’s aggressive OMO operations have seen it absorb substantial liquidity in recent weeks, reflecting its strategy to manage excess funds in the banking system and anchor inflation expectations.
The latest figures highlight sustained strong appetite for CBN instruments among banks and institutional investors, even as the central bank maintains its restrictive policy stance with the Monetary Policy Rate held at 26.50%. This dynamic is expected to continue shaping liquidity conditions in the money market over the coming months.
