364-day bill attracts N3.38 trillion in bids, while falling stop rate signals easing borrowing costs and strong market liquidity……
Investors submitted a combined N3.62 trillion in bids at the Central Bank of Nigeria’s (CBN) Treasury Bills auction on Wednesday, with the 364-day instrument accounting for N3.38 trillion of total demand, underscoring continued appetite for longer-dated government securities.
Auction results showed that although the CBN offered N700 billion across the three tenors, it ultimately allotted about N1.25 trillion, significantly increasing allocations on the one-year bill to absorb strong investor demand.
The 364-day Treasury Bill, which had an offer size of N500 billion, was oversubscribed by nearly seven times, attracting N3.38 trillion in subscriptions. The CBN allotted N1.02 trillion for the tenor—more than double the amount initially offered.
Despite the overwhelming demand, the stop rate on the one-year bill declined to 17.35 per cent, down from 17.66 per cent at the previous auction, suggesting investors were willing to accept lower yields amid improving liquidity conditions.
The one-year bill recorded bid rates ranging from 16.98 per cent to 20.00 per cent and will mature on July 29, 2027.
Demand for the shorter tenors was comparatively modest but still exceeded the amounts on offer.
The 91-day Treasury Bill, with an offer size of N100 billion, attracted N135.74 billion in subscriptions. The CBN allotted N130.72 billion, while the stop rate remained unchanged at 16.30 per cent.
Similarly, the 182-day bill received N104.74 billion in bids against an offer of N100 billion. The apex bank allotted N99.18 billion, with the stop rate holding steady at 16.50 per cent.
The latest auction continues a trend seen throughout July, with institutional investors concentrating heavily on the one-year instrument. At the previous auctions held on July 15 and July 8, the 364-day bill attracted N2.87 trillion and N1.86 trillion in subscriptions respectively, far exceeding the amounts offered.
Market analysts say the decline in the one-year stop rate reflects abundant liquidity in the financial system and growing investor confidence in locking funds into longer-dated government securities even at slightly lower yields.
The CBN’s decision to allot more than the advertised amount on the 364-day bill also aligns with its recent strategy of accommodating strong demand while supporting the Federal Government’s funding requirements under its expanded third-quarter Treasury Bills issuance programme.
Wednesday’s exercise marked the final Treasury Bills auction for July and forms part of the CBN’s N5.8 trillion gross issuance programme for the third quarter of 2026.
Despite the moderation in yields, returns on Nigerian Treasury Bills remain attractive, with the one-year instrument continuing to offer one of the strongest risk-free investment opportunities for institutional investors.
The latest auction also comes amid renewed calls from analysts and private sector groups for the CBN to lower stop rates on government securities, arguing that elevated yields continue to divert capital away from private businesses seeking affordable financing.
