The Central Bank of Nigeria (CBN) attracted N2.34 trillion in subscriptions at its N1.05 trillion Treasury Bills Primary Market Auction held on March 4, 2026, eventually allotting N1.01 trillion across the three tenors offered.
The auction results were released by the apex bank at the close of business on Wednesday.
The outcome reflects sustained investors’ appetite for government securities, particularly at the long end of the curve, amid rising yields.
The auction featured the 91-day, 182-day, and 364-day instruments, with demand heavily skewed toward the one-year bill. Stop rates edged higher, especially on the 364-day tenor, indicating investors’ preference for higher returns in a still-elevated interest rate environment.
What the data is saying
The auction results indicate that demand was overwhelmingly concentrated on the 364-day Treasury Bill, which recorded subscriptions far above its offer size. In contrast, the shorter tenors witnessed relatively weaker demand compared to the amounts on offer.
- The CBN offered a total of N1.05 trillion, comprising N100 billion for the 91-day, N150 billion for the 182-day, and N800 billion for the 364-day bill, while total subscriptions reached N2.34 trillion.
- The 364-day bill alone attracted N2.13 trillion in bids against the N800 billion offered, with N856.03 billion eventually allotted.
- The 91-day and 182-day instruments recorded bids of N80.92 billion and N136.54 billion respectively, with allotments of N64.27 billion and N91.43 billion.
- Stop rates settled at 15.95% for the 91-day bill, 16.65% for the 182-day bill, and 16.73% for the 364-day bill respectively.
Overall, the data underscores a clear investors’ tilt toward longer-duration.
More insights
Pricing dynamics at the auction reflected sustained upward pressure on yields, particularly at the long end of the curve. The movement in stop rates suggests investors are demanding higher compensation for locking in funds for longer maturities.
- The stop rate on the 364-day instrument rose by 0.83 percentage points to 16.73% from 15.90% at the previous auction.
- The 91-day bill rate increased marginally by 0.15 percentage points to 15.95%.
- The 182-day bill stop rate remained unchanged at 16.65%.
The sharper increase in the one-year stop rate indicates that investors are pricing in duration risk and possible expectations of a cut in interest rates in the near term.
What you should know
The auction was conducted using the CBN’s Scripless Securities Settlement System (S4) electronic interface, which facilitates the submission and processing of bids. It was executed through the Dutch auction system, which enhances efficiency and transparency in price discovery.
- Successful bids and stop rates were determined based on the percentage rates investors were willing to accept.
- The higher stop rate on the 364-day bill suggests that investors require additional yield premium to compensate for longer-term exposure.
- The settlement date for the auction was fixed for March 5, 2026, following the March 4 auction date.
The strong oversubscription, particularly at the long end, signals that liquidity remains robust within the financial system even as the CBN continues to deploy monetary tools to manage inflation and stabilize the macroeconomic environment.
