CBN to Auction N650bn Treasury Bills, Rates Projected to Dip
The Central Bank of Nigeria (CBN) is scheduled to open N650 billion worth of Treasury bills for subscription at the primary market auction on Wednesday, according to details from the circular released.
The auction offer size includes N100 billion in 91-day treasury bills and N50 billion in 182-day treasury bills, while the authority anticipates raising N500 billion from 364-day treasury bills.
In the same vein, Nigerian Treasury bills worth N105.05 billion, N26.41 billion, and N503.00 billion across the three maturities are scheduled to mature this week, totalling N634.47 billion.
At the auction held earlier this month, the CBN offered a total of N700.00 billion across the trio of instruments, slightly lower than the N750.00 billion offered at the previous auction.
In its commentary note, Meristem Securities Limited said investors’ appetite was strong, with a 2.01% surge to N2.41 trillion from N2.36 trillion in the previous month, resulting in a higher subscription-to-offer ratio of 3.44x vs 3.15x previously.
As in the previous auction, the investment firm said robust system liquidity played a major role in spurring higher subscriptions. For context, the CBN’s interbank liquidity ranged between N5.50trn and N6.30trn during the auction period.
At the end of the auction, allotment on the instruments came in at N63.58 billion, N67.68 billion, and N600.49 billion, with allotment tilting more towards the 364-day bill, in an effort to spread the debt burden over a longer time frame.
Rates on the 91-day maturity remained unchanged at 15.95%, while the rates on the 182-Day and 364- Day declined to 16.14% and 16.15% from 16.19% and 16.20%, respectively.
Fixed-income market analysts note that the secondary market has continued its bullish run since the last auction, with average T-bill yields falling to 17.48% as of 18th May 2026 from 17.49% at the last auction.
Investors rallied in the secondary market to fulfil unmet demand at the PMA, further supporting price appreciation and yield compression. “We expect stop rates to moderate across the tenors, supported by elevated system liquidity and sustained investor demand”, Meristem Securities Limited projected.
Analysts said unmet demand from the Nigerian government bond auction conducted on Monday is expected to flow into the T-Bills market, given that the total allotment came in lower at N334.53 billion relative to the N516.17 billion offered, despite the bonds clearing at relatively elevated rates of 17.00%.
“The combination of strong liquidity and reinvestment demand should support lower stop rates at the auction. Given the above, our rate guidance is informed by the need to strike a balance between maximising investment returns and having a successful bid”, Meristem Securities stated. Naira Falls on FX Liquidity Shortfall, NFEM Turnover Dips
