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The Central Bank of Nigeria’s (CBN) latest Treasury Bills auction has attracted significant interest from investors, with total bids worth N1.72 trillion. The auction, which offered N500 billion across three tenors, saw strong demand for the 364-day bill, with investors submitting bids of over N1.05 trillion. The 364-day bill attracted the most interest, with bids exceeding N1.05 trillion, representing nearly 90% of total subscriptions.
Following the surge in demand , the CBN increased the allotment for the 364-day paper to N503 billion, highlighting its liquidity management strategy and the appeal of long-term yields.
The stop rates for the 91-day and 182-day bills were held constant, while the 364-day bill saw a slight adjustment.
The strong response to the auction reflects investor confidence in the Nigerian economy and the attractiveness of government securities. With inflation still above 23%, the Treasury Bills market remains one of the few instruments offering positive real returns for investors seeking safety and yield.
The NTB market is expected to stay active as the Federal Government increasingly leans on domestic borrowing to fund its budget and the CBN maintains a measured approach to yield. The CBN’s decision to hold the Monetary Policy Rate at 27.50% has boosted market confidence and created a more predictable environment for fixed-income investors.
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