CBN targets N1.15Tn in T-bills auction amid aggressive liquidity mopping

The Central Bank of Nigeria (CBN) is set to conduct its second Treasury Bills (T-Bills) auction for January 2026 today, offering a total of ₦1.15 trillion across standard maturities. 

This move comes as recent Open Market Operations (OMO) continue to reshape liquidity conditions and influence yield expectations in the fixed-income market.

According to the CBN’s offer circular, the auction is heavily skewed toward longer-dated instruments to absorb excess system liquidity. 

The offer is split into ₦150 billion for 91-day bills, ₦200 billion for 182-day bills, and a dominant ₦800 billion for the 364-day tenor.

The auction follows aggressive liquidity management by the apex bank. In a recent OMO auction, the CBN allotted ₦2.64 trillion across 203-day and 245-day bills at stop rates of 19.38 percent and 19.39 percent, respectively. 

These elevated rates have reinforced the bank's tight monetary stance, signaling a continued resolve to anchor inflation expectations and support exchange rate stability.

Market operators note that the interplay between these OMO mop-ups and the primary market auction will be critical in determining the near-term direction of short-term interest rates. 

Following the recent OMO sale, average Treasury bill yields rose by four basis points to close at 18.14 percent, reflecting bearish sentiment as investors repriced risk.

Spot rates at today’s auction are widely expected to edge higher, extending the upward trend seen in late 2025. 

Analysts believe that sustained OMO issuances at elevated yields will remain a primary driver of market pricing as the CBN balances disinflation goals with government borrowing needs.