The Central Bank of Nigeria reduced the stop rate on its one-year treasury bill at Wednesday’s primary market auction after investors submitted overwhelming bids, reflecting sustained appetite for longer-dated government securities.
Auction results showed total subscriptions of about N3.62tn against the N700bn offered across the three maturities. The strongest demand came from the 364-day bill, which attracted N3.38tn in bids for an offer size of N500bn, representing an oversubscription of nearly seven times.
Despite the strong demand, the CBN allotted about N1.25tn across the 91-day, 182-day and 364-day instruments, with more than N1.02tn allocated to the one-year paper alone, which is well above the amount initially offered.
The stop rate on the 364-day bill fell to 17.35 per cent from 17.66 per cent recorded at the previous auction, a decline of 31 basis points. Bid rates for the tenor ranged between 16.98 per cent and 20.00 per cent, reflecting investors’ willingness to accept lower yields in exchange for locking in longer-term returns.
For the 91-day T-bill maturing on 29 October 2026, the CBN offered N100bn, received subscriptions of N135.74bn, and allotted N130.72bn. The stop rate remained unchanged at 16.30 per cent, while bid rates ranged from 15.97 per cent to 17.50 per cent. Related News 34 institutions face sanctions over forex rule violations 80 arrested over xenophobic attacks – S’Africa envoy NNPC to acquire Seplat’s 10% JV for $281.6m
