By Boluwatife Oshadiya | June 4, 2026
Key Points
- The Central Bank of Nigeria increased Treasury Bills rates across all tenors at its first June auction
- Investors submitted ₦2.16 trillion in bids against the ₦700 billion offered
- One-year Treasury Bills were allotted at 16.35%, up from 16.15% at the previous auction
Main Story
The Central Bank of Nigeria (CBN) increased yields on Treasury Bills at its latest primary market auction as strong investor demand persisted despite the Monetary Policy Committee’s decision to maintain the benchmark interest rate at 26.5%.
The auction, conducted through the Debt Management Office (DMO), offered ₦700 billion across three maturities, comprising ₦150 billion in 91-day bills, ₦50 billion in 182-day bills and ₦500 billion in 364-day instruments.
Investor appetite remained exceptionally strong, with total subscriptions reaching approximately ₦2.16 trillion, more than three times the amount offered. Demand was heavily concentrated in the one-year instrument, which attracted ₦1.95 trillion, accounting for roughly 90% of total bids received.
The CBN allotted ₦1.243 trillion worth of 364-day Treasury Bills at a stop rate of 16.35%, representing a 20-basis-point increase from the previous auction’s 16.15%.
The 91-day Treasury Bills cleared at 16.05%, compared with 15.95% previously, while the 182-day instrument was allotted at 16.19%, up from 16.14%.
In the secondary market, average Treasury Bills yield declined slightly by two basis points to 17.45%, reflecting sustained investor demand for fixed-income securities.
“Strong demand for Treasury Bills continues to reflect investors’ preference for relatively safe naira-denominated assets amid prevailing macroeconomic uncertainties,” market analysts noted following the auction results.
What’s Being Said
“The level of oversubscription demonstrates that liquidity remains strong within the financial system despite elevated interest rates,” analysts at Cordros Capital said in a post-auction review.
“Investors continue to favour government securities due to their attractive risk-adjusted returns and the stability they provide in uncertain market conditions,” said analysts at CSL Stockbrokers.
What’s Next
- Investors will closely watch inflation data and future CBN policy decisions for signals on interest rate direction
- The next Treasury Bills auction will provide further insight into fixed-income market sentiment
- Market participants will assess whether yields continue to rise amid inflationary pressures
The Bottom Line: The significant oversubscription at the latest Treasury Bills auction underscores the continued attractiveness of government securities. Rising stop rates suggest the CBN remains committed to maintaining investor interest in naira assets while managing liquidity conditions.
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