CBN Allots N829.3bn T-Bills on Strong N2trn Subscription

The Central Bank of Nigeria (CBN) allotted a total of N829.32 billion at its Treasury Bills Primary Market Auction held on May 20, 2026, as investor demand remained heavily skewed toward long-dated government securities.

Auction results showed that total subscriptions rose to about N1.99 trillion, significantly higher than the N650 billion offered across the 91-day, 182-day, and 364-day tenors, reflecting sustained liquidity in the financial system and strong appetite for risk-free instruments.

The one-year Treasury bill accounted for the bulk of investor demand and allotments. The 364-day instrument attracted subscriptions worth N1.84 trillion against an offer size of N500 billion, representing an oversubscription of about 3.7 times. The apex bank eventually allotted N683.29 billion on the tenor.

The 182-day bill recorded subscriptions of N81.04 billion compared to the N50 billion offered, while allotment stood at N78.59 billion.

In contrast, the 91-day bill witnessed weaker demand, attracting subscriptions of N68.63 billion against the N100 billion offered. The CBN allotted N67.45 billion for the short-term instrument.

The auction outcome highlights investors’ continued preference for longer-dated securities as they seek to lock in elevated yields amid lingering macroeconomic uncertainty and expectations that rates may decline in the coming months.

Stop rates across the three tenors remained largely unchanged, indicating that the CBN maintained a firm stance on yields despite the significant oversubscription recorded, particularly on the long end of the curve.

The stop rate on the 91-day bill edged slightly higher to 15.95 per cent from 15.949 per cent at the previous auction, while the 182-day bill remained unchanged at 16.14 per cent.

The 364-day bill eased marginally to 16.149 per cent from 16.15 per cent, suggesting stability in market pricing and strong investor confidence in long-term government paper.

Analysts said the relatively weak demand for the 91-day instrument indicates that investors are becoming less inclined to reinvest at the short end of the curve, preferring instead to secure current high yields on longer-tenor securities.

The latest auction follows the May 6 Treasury Bills auction, where the CBN allotted N731.75 billion after total subscriptions surged to N2.41 trillion against a combined offer of N700 billion.

Demand at that auction was also dominated by the 364-day bill, which attracted N2.23 trillion in subscriptions.

Market analysts noted that the repeated oversubscription recorded across recent auctions underscores the depth of investor appetite for high-yield government securities, especially as investors anticipate a possible moderation in yields later in the year.

The strong demand trend also follows the CBN’s aggressive Treasury bills issuance programme in April 2026, during which two major auctions valued at N700 billion and N750 billion recorded total allotments of about N1.63 trillion, exceeding the combined offer size of N1.45 trillion.

At the April 22 auction alone, the apex bank allotted N894.17 billion after subscriptions climbed to N2.36 trillion.