The Central Bank of Nigeria (CBN) has allotted N1.054 trillion in Treasury Bills at its September 9, 2026 Primary Market Auction, while cutting the stop rate on the 364-day bill to 16.62%.
The latest reduction marks the third consecutive cut in the yield on the one-year Treasury Bill, reinforcing signs of easing pressure on interest rates in the fixed-income market.
Investors submitted bids worth N2.64 trillion across the three tenors offered, compared with the N750 billion initially offered by the CBN, translating to a bid-to-offer ratio of about 3.52 times.
Despite the lower offer, the apex bank allotted about N304.18 billion above the advertised amount.
The strongest demand was recorded on the 364-day bill, which attracted N2.537 trillion in subscriptions against N500 billion offered.
The CBN ultimately allotted N961.28 billion on the one-year instrument, N461.28 billion above the advertised amount.
Its stop rate fell by 22 basis points from 16.84% at the September 2 auction to 16.62%.
Shorter tenors attract weaker demand
The 91-day Treasury Bill received N75.97 billion in subscriptions against N150 billion offered, leaving it the only undersubscribed tenor. The CBN allotted N70.47 billion at a stop rate of 16.30%.
For the 182-day bill, investors submitted N289.97 billion against N100 billion offered, but only N22.44 billion was allotted. Its stop rate remained unchanged at 16.50%.
The 364-day instrument accounted for about 96% of total subscriptions, highlighting investors’ preference for locking in returns over a longer period despite the successive rate cuts.
Third consecutive rate reduction
The latest cut follows reductions at the previous two auctions.
On August 26, the CBN reduced the 364-day stop rate by 44 basis points from 17.59% to 17.15%. At the September 2 auction, it was cut by another 31 basis points to 16.84%.
With Wednesday’s 22-basis-point reduction, the one-year NTB yield has declined by a cumulative 97 basis points in three consecutive auctions.
The sustained decline suggests that Nigeria’s fixed-income market may be entering a period of easing after years of elevated yields and tight monetary conditions.
The latest auction also comes ahead of the next meeting of the CBN’s Monetary Policy Committee, with the Treasury Bill yield movement providing another indication of changing conditions in the domestic interest-rate market.
