The Central Bank of Nigeria (CBN) recorded the sale of N5.53 trillion worth of Treasury bills to investors during the first quarter of 2025, reflecting growing interest in naira-denominated assets. The figure represents approximately 36.4 percent of the total subscriptions received across eight primary market auctions held within the first three months of the year.
Investors collectively staked N15.20 trillion on the eight Treasury bill auctions carried out by the Debt Management Office (DMO) on behalf of the apex bank. Of this amount, N9.67 trillion in submitted bids was rejected. Analysts noted that the amount raised by the CBN surpassed its initial Q1 target.
Amid a tightening liquidity environment and an increased appetite for longer-tenure Treasury bills, spot rates underwent a repricing. In its monthly investor update, AIICO Capital Limited noted that market sentiment in the Treasury Bills segment fluctuated throughout March, largely influenced by major auctions and shifting investor expectations.
March began on a subdued note, with limited trading activity as market players awaited outcomes from the Nigerian Treasury Bills primary auctions. Fixed income experts at AIICO Capital stated that the first auction of the month experienced robust participation, with the DMO putting N650 billion worth of 91-day, 182-day, and 364-day bills on offer.
This initial auction received overwhelming interest, with total subscriptions reaching N1.92 trillion. This high demand pushed stop rates for the longer-dated instruments to 17.75 percent and 17.82 percent respectively, while the short-tenure rate held steady at 17.00 percent. In the weeks that followed, investor sentiment remained mixed, alternating between the pursuit of high-yield opportunities and a retreat from longer-dated positions.
Mid-month and end-of-month auctions featured higher offer volumes, which attracted stronger investor interest and contributed to an uptick in stop rates. The revised auction calendar for March, which saw increased bill offerings, further accelerated the rise in yields as investors sought more attractive returns.
On the whole, the average mid-point yield for the month declined by four basis points month-on-month to 19.74 percent. Surpassing its first-quarter target, the Debt Management Office successfully raised N5.53 trillion from Treasury bill sales, compared to its offer of N5.15 trillion, with total bids submitted reaching N15.20 trillion.
 recorded the sale of N5.53 trillion worth of Treasury bills to investors during the first quarter of 2025...){kind=link}