The Central Bank of Nigeria (CBN) will return to the primary market on Wednesday with a ₦1.15 trillion Treasury Bills issuance, marking its second auction for the month as appetite for naira-denominated assets remains firm along the yield curve.
According to auction details, the offer will be distributed across three standard maturities — 91-day, 182-day, and 364-day instruments — as the monetary authority continues liquidity management operations while funding fiscal obligations.
The apex bank plans to float ₦150 billion in 91-day Treasury Bills. However, short-duration instruments have recently witnessed relatively muted investor demand, as market participants shift capital toward longer-dated securities offering more attractive yield-lock opportunities.
At the mid-curve segment, ₦150 billion will also be made available in 182-day bills. Recent auction trends show that subscription levels for the belly of the curve have not matched the aggressive bidding recorded at the long end, reflecting investor preference for extended duration exposure.
Strong Appetite for 364-Day Bills Despite Yield Compression
The 364-day Treasury Bill remains the most sought-after instrument in the current rate environment. Market analysts expect subscription volumes to stay robust despite a downward adjustment in the stop rate recorded at the previous auction.
At the last sale, investors — including deposit money banks, asset managers, and institutional players — submitted bids totaling approximately ₦4.4 trillion against an offer of ₦800 billion for the one-year paper. The overwhelming oversubscription allowed the CBN to significantly reduce the discount rate to 16.987 percent from 18.36 percent previously quoted.
Meanwhile, the stop rates for the shorter maturities were maintained at 15.84 percent for the 91-day bill and 16.65 percent for the 182-day tenor. The repricing of yields reflects evolving macroeconomic conditions, particularly easing inflationary pressures and relative stability in the foreign exchange market. Investors are positioning ahead of potential monetary policy adjustments, with expectations of gradual yield moderation if disinflation persists.
Analysts Predict Lower Stop Rates and Record Bid Volumes
Market participants anticipate further yield adjustments at Wednesday’s auction, especially on the one-year instrument, where demand is projected to remain elevated.
In a research note, AAG Capital Limited cited Nigeria’s latest inflation reading of 15.10 percent and secondary market yield compression as indicators that stop rates may decline further. The firm also projected the possibility of another record-breaking bid volume.
Analysts suggest that investors are attempting to secure attractive real returns on the longest available short-term instrument before any potential policy easing cycle begins.
Despite moderation in spot yields, Nigerian Treasury Bills continue to offer comparatively competitive returns relative to peer emerging markets, reinforcing sustained capital rotation into the naira curve.
The CBN’s auction strategy aligns with broader efforts to finance a substantial 2026 fiscal deficit while maintaining domestic liquidity balance and preserving investor confidence in fixed-income instruments.
 will return to the primary market on Wednesday with a ₦1.15 trillion Treasury Bills issuance, marking its second auction for the month as appetite for naira-denominated assets remains firm along the yield curve.){kind=link}