The Central Bank of Nigeria (CBN) allotted N829.32 billion at its Treasury Bills Primary Market Auction held on May 20, 2026, exceeding the initially offered N650 billion across the 91-day, 182-day, and 364-day tenors.
Auction results showed that total subscriptions rose to about N1.99 trillion, underscoring strong market liquidity and sustained investor appetite for government securities, particularly longer-dated instruments.
The one-year (364-day) bill accounted for the bulk of demand, attracting subscriptions of N1.84 trillion against an offer of N500 billion. The CBN eventually allotted N683.29 billion, translating to an oversubscription rate of about 3.7 times.
The 182-day bill recorded subscriptions of N81.04 billion compared to the N50 billion offered, with allotments amounting to N78.59 billion. In contrast, the 91-day bill attracted relatively weaker demand, drawing subscriptions of N68.63 billion against an offer of N100 billion. The apex bank allotted N67.45 billion, making it the only tenor that failed to attract subscriptions above its offer size.
The auction outcome highlights investors’ continued preference for longer-dated, risk-free assets as they seek to lock in attractive yields amid lingering macroeconomic uncertainties.
Stop rates remained largely unchanged across all maturities, indicating that the CBN maintained its yield stance despite the significant oversubscription, particularly at the long end of the curve.
The 91-day bill stop rate edged marginally 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 slightly to 16.149 per cent from 16.15 per cent.
Analysts said the subdued demand for the 91-day instrument suggests investors are becoming less inclined to reinvest at the short end of the curve, preferring longer maturities to secure current yield levels.
The latest auction follows the May 6 Primary Market Auction, where the CBN allotted N731.75 billion after receiving subscriptions worth N2.41 trillion against an offer of N700 billion. Demand at that auction was also dominated by the 364-day bill, which attracted N2.23 trillion in subscriptions.
The back-to-back oversubscriptions reflect sustained investor confidence in Treasury bills and a strong appetite for high-yield government securities, amid expectations that yields could moderate in the coming months.
The trend also follows an aggressive issuance schedule in April 2026, when the CBN conducted two major Treasury bills auctions worth N700 billion and N750 billion. Combined allotments reached about N1.63 trillion, surpassing the total offer size of N1.45 trillion.
At the April 22 auction alone, the apex bank allotted N894.17 billion after subscriptions surged to N2.36 trillion.
Market analysts noted that the near-stable stop rates at the May 20 auction, following marginal declines recorded earlier in the month, suggest yields may be approaching a short-term floor. They added that any significant downward movement in rates will likely depend on future monetary policy decisions and broader macroeconomic developments.
They further observed that the sustained concentration of demand on the 364-day bill reflects expectations that yields could gradually soften, prompting investors to increase exposure to longer-dated instruments while current returns remain attractive.
