CBN Sells N5.5trn T-Bills in Q1, Rejects Bids worth N9.7trn
In the first quarter of 2025, the Central Bank of Nigeria (CBN) sold N5.53 trillion worth of Treasury bills to investors amidst rising appetite for naira assets. The total amount of bills allotted to investors accounted for about 36.4% of all subscriptions received at the eight primary market auctions conducted in the first three months of the year.
Investors staked N15.20 trillion across eight Treasury bills auctioned by the Debt Management Office on behalf of the CBN. A total of N9.67 trillion worth of bids submitted were rejected. The amount raised by the authority exceeded its target for Q1, analysts said.
With tight liquidity conditions and increased appetite for long-dated Treasury bills, spot rates were repriced. In its monthly investors note, AIICO Capital Limited highlighted that the Treasury Bills market saw fluctuating sentiment throughout March, driven by key auctions and investor expectations.
The month began quietly, with limited trading activity as market participants awaited the Nigerian Treasury bills primary auctions. Fixed income market analysts at AIICO Capital Limited said the first auction of the month saw strong investor participation, with the DMO offering N650 billion in 91-day, 182-day, and 364-day bills.
This auction attracted a significant subscription of N1.92 trillion, pushing stop rates for the longer tenors to 17.75% and 17.82%, while the short tenor remained at 17.00%. Subsequent weeks saw mixed sentiment, as investors oscillated between seeking attractive yields and selling off longer tenors.
The main auctions for Nigerian bills offered larger amounts in mid-month and toward month-end, attracted higher subscriptions, and drove stop rates upward. The revised auction calendar, which increased the offer size for March, led to sharper yield increases as investors expected better returns.
Overall, the average mid-yield for the month declined by 4 bps month on month to 19.74%. Beating the target for Q1, Nigeria’s Debt Office raised N5.53 trillion from Treasury bills sold to investors against N5.15 trillion offered, with total subscriptions hitting N15.20 trillion.
Short-term Interest Rates Fall on Robust Banking System Liquidity
