The Central Bank of Nigeria (CBN) allotted N1.06 trillion at its Treasury bills (NTB) primary market auction held on Wednesday, July 8, 2026, raising the stop rate on the one-year bill to 17.70%, up from 17.34% recorded at the June 17 auction, while leaving the mid-tenor rate unchanged.
Auction results showed total subscriptions of about N2.03 trillion against an offer of N700 billion, representing an oversubscription of approximately 2.9 times.
As in previous auctions, investors showed the strongest appetite for the 364-day Treasury bill, which attracted N1.86 trillion in bids.
The auction marks the first major sale under the CBN’s expanded Q3 2026 NTB Issuance Programme, which targets N5.8 trillion in gross issuances between July and September—more than four times the net issuance target for the previous quarter.
Stop rates increased at both the short and long ends of the yield curve compared with the June 17 auction, while the mid-tenor rate remained unchanged.
Auction highlights
- Total offer: N700 billion
- Total subscriptions: N2.03 trillion (2.9x oversubscribed)
- Total allotment: N1.06 trillion, about 52% above the amount offered
Breakdown by tenor
364-Day Bill (Maturity: July 8, 2027)
- Offer: N500 billion
- Subscription: N1.86 trillion (3.7x oversubscribed)
- Allotment: N935.32 billion
- Bid range: 16.55%–20.32%
- Stop rate: 17.70%, up 36 basis points from 17.34% at the June 17 auction
182-Day Bill (Maturity: January 7, 2027)
- Offer: N100 billion
- Subscription: N29.94 billion (undersubscribed)
- Allotment: N13.76 billion
- Bid range: 15.75%–17.30%
- Stop rate: 16.50%, unchanged from the June 17 auction
91-Day Bill (Maturity: October 8, 2026)
- Offer: N100 billion
- Subscription: N146.54 billion (oversubscribed)
- Allotment: N115.38 billion
- Bid range: 15.50%–18.00%
- Stop rate: 16.30%, up marginally from 16.28% at the June 17 auction.
Investor demand remains concentrated on one-year bills
The one-year Treasury bill continued to dominate investor demand, maintaining a trend seen throughout the year.
- The 364-day bill accounted for about 91% of total subscriptions and 88% of total allotments, reflecting investors’ preference to lock in higher yields over a longer tenor.
- The 182-day bill was the weakest performer, attracting just N29.94 billion in subscriptions—about 30% of the N100 billion offered—making it the only undersubscribed tenor.
- Although the 91-day bill was oversubscribed, its stop rate rose only marginally, indicating relative stability in short-term pricing.
The 36-basis-point increase in the one-year stop rate came despite the CBN’s earlier July issuance calendar indicating an expected rate of 17.34% for the tenor.
Liquidity impact
The July 8 auction also resulted in a net liquidity withdrawal from the banking system, with only N269.36 billion in Treasury bills maturing on the same day. The maturities comprised:
- N94.82 billion in 91-day bills
- N48.23 billion in 182-day bills
- N126.31 billion in 364-day bills
The July 8 auction marks the third consecutive auction at which the CBN has raised the one-year stop rate, following similar increases at the June 3 and June 17 auctions.
Looking ahead:
- July 15: The CBN plans to offer N600 billion in Treasury bills, with no significant maturities due.
- July 22: No new Treasury bill auction is scheduled, while N378.43 billion in bills will mature, injecting liquidity into the banking system.
- July 29: The apex bank plans to auction N700 billion in new Treasury bills, with no major maturities expected.
Overall, the CBN plans to issue N2 trillion in Treasury bills during July against total maturities of only N647.79 billion, resulting in the largest planned monthly net liquidity withdrawal through Treasury bill operations so far in 2026.
The CBN’s Monetary Policy Rate (MPR) remains at 26.50%, keeping Treasury bill and bond yields below the benchmark policy rate but still above Nigeria’s 15.93% inflation rate recorded in May. The yield environment reflects the apex bank’s continued tight monetary policy stance aimed at maintaining price stability through the second half of 2026.
Nairametrics
