By Boluwatife Oshadiya | September 2, 2026
Key Points
- CBN offers N700 billion in Treasury bills across 91-day, 182-day and 364-day maturities
- N500 billion of the offer is allocated to one-year Treasury bills amid strong demand for longer-tenor paper
- Analysts expect subscriptions to exceed the offer severalfold as fixed-income demand remains strong
Main Story
The Central Bank of Nigeria (CBN) is offering N700 billion in Treasury bills at its first auction for September, with the largest allocation going to 364-day bills. According to the reviewed auction circular issued for the midweek exercise, the Debt Management Office (DMO) will offer N100 billion in 91-day bills, N100 billion in 182-day bills and N500 billion in 364-day Treasury bills on behalf of the CBN.
Investment firms expect the auction to attract substantial demand, particularly for the one-year paper, as investors continue to seek fixed-income assets amid strong liquidity in the financial system.
At the previous auction in August, the CBN maintained the spot rate for 91-day Treasury bills at 16.30% and the 182-day instrument at 16.50%. The spot rate for the 364-day bill was reduced to 17.15% following strong demand for the one-year instrument.
Trading in the secondary Treasury bills market remained slightly bullish, with the average yield unchanged at 18.85%. Demand was particularly notable for the 12-August paper, whose yield declined by 26 basis points, and the 26-August paper, which fell by four basis points.
Market analysts expect the heavy demand for fixed-income securities to continue into the September auction. They also project that spot rates could decline, particularly as the lower offer size at recent Open Market Operations auctions increases competition for available securities.
The auction will therefore provide a fresh indication of investor appetite for government short-term debt and the direction of Treasury bill yields in September.
What’s Being Said
Investment firms expect the September auction to attract excess subscriptions, particularly for the 364-day Treasury bill, although the final level of demand will depend partly on available liquidity across the financial system.
Market analysts also expect spot rates to decline as investors compete for the relatively limited supply of securities.
No direct quotation from the CBN, DMO or an identified market analyst was provided in the source material.
What’s Next
- Investors will submit bids for the N700 billion Treasury bill offer at the September auction
- Market participants will assess subscription levels and clearing rates, particularly for the N500 billion 364-day offer
- Secondary-market yields will provide an early signal of whether strong demand is translating into lower Treasury bill rates
Bottom Line
The Bottom Line: The September auction is positioned to test how far investor demand for fixed-income assets can push Treasury bill rates lower. With N500 billion concentrated in the one-year tenor, the clearing rate for 364-day paper will be the key market signal to watch.
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