By Boluwatife Oshadiya | April 10, 2026
Key Points
- CBN reduces rates on 182- and 364-day Treasury bills at latest auction
- Total subscriptions surge to ₦2.96 trillion against ₦700 billion offer
- One-year yield declines to 16.20% amid strong investor demand
Main Story
The Central Bank of Nigeria (CBN) lowered stop rates on its 182-day and 364-day Treasury bills at its midweek primary market auction, signaling a continued push to moderate borrowing costs amid strong investor liquidity.
Auction results show the apex bank offered ₦700 billion across standard maturities but received total bids of ₦2.96 trillion, reflecting sustained demand for government securities in a high-yield environment. Total allotment settled at ₦731 billion.
The 91-day bill cleared at 15.95%, unchanged from the previous auction, with ₦94.82 billion allotted out of ₦96.78 billion subscribed. However, the 182-day bill saw its yield decline to 16.19% from 16.42%, marking a second consecutive rate cut, with ₦87.05 billion allotted from ₦227.94 billion in bids.
The 364-day tenor recorded the strongest demand, attracting ₦2.63 trillion in subscriptions. The CBN allotted ₦549.5 billion, with the stop rate easing to 16.20% from 16.43%.
In the secondary market, trading activity remained muted as investors focused on the primary auction. Average benchmark yields edged lower by 3 basis points to 16.11%.
What’s Being Said
“The sustained demand reflects excess system liquidity and a preference for risk-free instruments despite declining yields,” said analysts at Meristem Securities Limited.
“Rate moderation suggests the CBN is gradually recalibrating its liquidity management strategy without triggering abrupt market shocks,” Cowry Asset Management noted in a market brief.
What’s Next
- The next Treasury bills auction is expected to provide further clarity on rate direction
- Investors will monitor liquidity trends ahead of the next Monetary Policy Committee (MPC) meeting
- Secondary market yields may adjust downward if demand remains elevated
Bottom Line
The Bottom Line: The CBN’s gradual rate cuts signal a controlled easing cycle driven by excess liquidity, but sustained investor demand suggests yields may remain relatively elevated in the near term.
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