CBN allots N1.06 trillion at July 8 NTB auction, hikes one-year rate to 17.70%

The Central Bank of Nigeria (CBN) allotted N1.06 trillion at its Wednesday, July 8, 2026 Treasury bills primary market auction, raising the stop rate on the one-year bill sharply to 17.70% compared with the June 17 auction stop rate of 17.34% while keeping the mid-tenor rate unchanged.

The auction result seen by Nairametrics shows total subscriptions of about N2.03 trillion against an offer size of N700 billion.

This gives a bid-to-offer ratio of about 2.9 times.

As in previous auctions, investors showed the strongest appetite for the 364-day bill, which alone attracted N1.86 trillion in bids.

This is the first major auction under the CBN’s expanded Q3 2026 NTB Issuance Programme, which targets N5.8 trillion in gross issuance between July and September, more than four times the net target set for the previous quarter.

What the data is saying:

Stop rates rose on the short and long ends of the curve compared with the June 17 auction, while the mid-tenor bill held steady. Highlights of the July 8 auction:

• Total offered: N700 billion
• Total subscriptions: N2.03 trillion (2.9x oversubscribed)
• Total allotment: N1.06 trillion (about 52% above the offer size)

The full breakdown by tenor shows that the longer tenor cleared at stop rate significantly higher than previous rates, despite heavy oversubscriptions, almost four times higher than offer amount.

364-Day Bill (Maturity: July 8, 2027)

• Offer: N500 billion
• Subscription: N1.86 trillion (3.7x oversubscribed)
• Allotment: N935.32 billion
• Range of bids: 16.55% – 20.32%
• Stop rate: 17.70%, up 36 basis points from 17.34% at the June 17 auction

182-Day Bill (Maturity: January 7, 2027)

• Offer: N100 billion
• Subscription: N29.94 billion (undersubscribed)
• Allotment: N13.76 billion
• Range of bids: 15.75% – 17.30%
• Stop rate: 16.50%, unchanged from June 17

91-Day Bill (Maturity: October 8, 2026)

• Offer: N100 billion
• Subscription: N146.54 billion (oversubscribed)
• Allotment: N115.38 billion
• Range of bids: 15.50% – 18.00%
• Stop rate: 16.30%, up 2 basis points from 16.28% at the June 17 auction

More insights:

The one-year bill continues to dominate investor demand, just as it has done in past auctions this year.

• The 364-day bill made up about 91% of total subscriptions and about 88% of total allotment, showing that investors still prefer to lock in yield over a longer period.
• The 182-day bill was the weak spot in the auction. Subscriptions came in at just N29.94 billion, or about 30% of the N100 billion on offer, making it the only undersubscribed tenor.
• The 91-day bill was oversubscribed, but its stop rate of 16.30% still moved only slightly from the previous auction, suggesting short-term pricing remained fairly stable.

The 36 basis point jump on the 364-day bill came even though the CBN had earlier indicated it planned to keep the rate unchanged at 17.34%, based on its own July issuance indicative rate.

The July 8 auction also came with a net withdrawal of funds from the banking system with about N269.36 billion in Treasury bills expected to mature today, made up of N94.82 billion in 91-day bills, N48.23 billion in 182-day bills, and N126.31 billion in 364-day bills.

What you should know:

The July 8 auction is the third in a row in which the CBN has raised the one-year stop rate, after similar increases at the June 3 and June 17 auctions.

• The CBN plans to offer N600 billion in bills on July 15, with no major maturities that day.
• On July 22, the CBN is not planning any new bill sales, but N378.43 billion in bills will mature, putting more money back into the banking system.
• On July 29, the CBN plans to offer N700 billion in new bills, with no major maturities expected that day.
• Across the full month, the CBN plans to sell N2 trillion in Treasury bills against only N647.79 billion in bills maturing, resulting in the largest planned monthly net withdrawal of funds through Treasury bills so far in 2026.

The CBN’s Monetary Policy Rate remains at 26.50%, keeping bond and NTB yields well below the benchmark rate but fairly higher than inflation rate at 15.93% in May, in line with the apex bank’s tight monetary policy stance through the second half of 2026.