Investors intensified demand for the Central Bank of Nigeria one-year Treasury Bills at the July 8, 2026, auction, pushing subscriptions far above the amount on offer as higher yields continued to attract interest in the fixed-income market.
The CBN offered ₦700 billion across the 91-day, 182-day and 364-day tenors but allotted ₦1.06 trillion after total subscriptions exceeded ₦2 trillion. The strongest demand was for the 364-day bill, whose stop rate rose to 17.70 percent from 17.34 percent at the previous auction in June.
The one-year paper attracted subscriptions worth ₦1.86 trillion against an offer of ₦500 billion, making it more than three times oversubscribed. The CBN eventually allotted ₦935.32 billion, underscoring investors’ preference for locking in higher returns over a longer period rather than rolling over shorter-dated securities.
Demand for shorter tenors was mixed. The 91-day bill recorded subscriptions of ₦146.54 billion against ₦100 billion offered, with the stop rate edging up to 16.30 percent. In contrast, the 182-day bill was undersubscribed, attracting ₦29.94 billion in subscriptions against a ₦100 billion offer, while its stop rate remained unchanged at 16.50 percent.
The sustained appetite for longer-dated bills reflects expectations that interest rates will remain elevated. With the Monetary Policy Rate at 26.5 percent, Treasury Bills continue to offer attractive risk-free returns, particularly for conservative investors seeking protection against inflation.
The auction also highlights the CBN’s ongoing liquidity management strategy. By allotting more than the amount initially offered, the central bank continued to mop up excess liquidity from the financial system, a move aimed at supporting its inflation-control efforts.
Looking ahead, the CBN is scheduled to conduct another Treasury Bills auction on July 15, offering ₦600 billion. Market participants will be watching closely to see whether demand for the one-year tenor remains strong and whether yields continue their upward trend.
