CBN Treasury Bill Auction Sees N2.34 Trillion in Bids, One-Year Bill Leads Investor Demand
The Central Bank of Nigeria (CBN) recorded strong investor interest at its Treasury Bill Primary Market Auction held on March 4, 2026, attracting total subscriptions of N2.34 trillion. Out of the N1.05 trillion offered, the apex bank allotted N1.01 trillion across the three tenors: 91-day, 182-day, and 364-day instruments, reflecting sustained demand for government securities amid rising yields.
Investors showed a clear preference for the longer-duration 364-day bills, which alone attracted N2.13 trillion in bids against an N800 billion offer. By contrast, the shorter 91-day and 182-day bills saw relatively modest subscriptions, highlighting a tilt toward securities that offer higher returns over a longer term. The allotments were N856.03 billion for the 364-day, N91.43 billion for the 182-day, and N64.27 billion for the 91-day bill.
Stop rates moved higher at the auction, signaling that investors are seeking increased compensation for locking in funds over extended periods. The 364-day bill rate rose to 16.73% from 15.90%, while the 91-day rate inched up to 15.95%, and the 182-day bill remained unchanged at 16.65%. This pattern suggests that market participants are factoring in duration risk and potential changes in interest rates in the near term.
The auction was conducted electronically via the CBN’s Scripless Securities Settlement System (S4), using a Dutch auction mechanism to enhance transparency and efficiency in price discovery. Successful bids were determined by the highest rates investors were willing to accept, ensuring competitive allocation and fair pricing across all maturities.
Overall, the strong oversubscription, particularly for the one-year Treasury Bill, underscores robust liquidity in Nigeria’s financial system. Despite the CBN’s ongoing monetary interventions to manage inflation and stabilize the macroeconomy, investors remain confident in government securities, especially for longer-term investment opportunities.
source: nairametrics