The Central Bank of Nigeria (CBN) allotted a total of N731.75 billion at its Treasury Bills Primary Market Auction held on Wednesday, May 6, 2026, as investor demand remained overwhelmingly skewed toward the 364-day instrument despite marginal declines in stop rates across all maturities.
Auction results seen by Nairametrics on Wednesday showed that total subscriptions climbed to N2.41 trillion, far exceeding the N700 billion offered across the 91-day, 182-day, and 364-day tenors.
The apex bank also increased allotments above the initial offer size, particularly on the one-year paper, underscoring sustained liquidity conditions and continued appetite for long-dated government securities.
What the data is saying
Investor demand remained heavily concentrated on the 364-day Treasury bill, which accounted for the overwhelming majority of subscriptions and allotments recorded at the auction.
- The 364-day bill attracted subscriptions of N2.23 trillion against an offer of N550 billion, with the CBN allotting N600.49 billion.
- The 182-day bill recorded subscriptions of N105.33 billion compared to N50 billion offered, while allotment stood at N67.68 billion.
- The 91-day bill saw relatively weak demand, attracting subscriptions of N71.23 billion against N100 billion offered, with N63.58 billion eventually allotted.
The auction outcome reflects sustained investor preference for longer-dated risk-free instruments as market participants continue seeking to lock in elevated yields amid lingering uncertainty in the broader macroeconomic environment.
More insights:
Stop rates declined marginally across all tenors, suggesting that market liquidity remained robust despite the strong oversubscription levels recorded at the auction.
- The 91-day bill stop rate declined slightly to 15.949% from 15.95% at the previous auction.
- The 182-day bill eased to 16.14% from 16.19%, representing a 5-basis-point decline.
- The 364-day bill also declined to 16.15% from 16.20%, falling by 4.9 basis points.
- Despite the moderation in stop rates, true yields remained elevated across maturities, highlighting the continued attractiveness of Nigerian government securities to institutional investors.
- The 91-day bill offered a true yield of about 16.62%, while the 182-day and 364-day bills delivered true yields of approximately 17.57% and 19.26%, respectively.
The relatively weak subscription recorded on the short-dated 91-day instrument further reinforces the market’s preference for longer-duration assets, with investors appearing reluctant to reinvest at the short end of the curve where yield upside remains limited.
What you should know
The latest auction follows an aggressive Treasury bills issuance pattern by the CBN in April 2026, during which the apex bank conducted two major NT-bills auctions valued at N700 billion and N750 billion respectively.
- However, total allotments in April climbed to about N1.63 trillion, significantly above the combined offer size of N1.45 trillion, reflecting persistent investor demand and elevated system liquidity.
- At the April 22 auction alone, the CBN allotted N894.17 billion after subscriptions surged to N2.36 trillion, with demand heavily concentrated on the 364-day instrument.
- The continued oversubscription trend highlights strong investor appetite for high-yield government securities as market participants seek to lock in attractive risk-free returns.
Analysts also note that the sustained preference for longer-dated Treasury bills signals expectations that yields may gradually moderate in the coming months as liquidity conditions improve.
