CBN Sells N829.32bn Treasury Bills as Investors Rush Long-Term Papers Amid Strong Demand

The Central Bank of Nigeria (CBN) has allotted a total of N829.32 billion at its Treasury Bills Primary Market Auction held on May 20, 2026, significantly surpassing its initial offer size. The auction covered the 91-day, 182-day, and 364-day tenors, with investor demand heavily skewed toward the one-year instrument.

Data from the auction showed total subscriptions reached about N1.99 trillion, far above the N650 billion offered. This reflects strong liquidity in the financial system and sustained investor appetite for government-backed securities amid ongoing macroeconomic uncertainty.

The 364-day bill dominated activity, attracting a massive N1.84 trillion in subscriptions against an offer of N500 billion. The CBN eventually allotted N683.29 billion, reinforcing the preference for locking in longer-term yields. In contrast, the 182-day bill recorded moderate demand, while the 91-day bill was the weakest performer, falling short of its offer size.

Stop rates across all tenors remained largely stable, indicating that the CBN maintained tight control over borrowing costs despite the oversubscription. The 91-day bill rose marginally to 15.95%, while the 182-day and 364-day rates held steady around 16.14% and 16.15%, respectively, showing little movement from the previous auction.

The outcome follows a similar trend from earlier May and April auctions, where demand consistently exceeded supply. Analysts suggest the sustained focus on long-dated bills signals investor expectations that yields may begin to ease in the future, prompting a rush to secure higher returns while they last.