The Central Bank of Nigeria (CBN) successfully raised N1.19 trillion through its Treasury Bills auction on Wednesday, July 15, 2026, with investors showing exceptionally strong appetite for the long-dated instrument.
Total subscriptions reached N3.034 trillion against an offer size of N600 billion, resulting in a bid-to-offer ratio of 5.06 times.
Overwhelming Demand for 364-Day Bill
The 364-day bill once again dominated the auction, attracting N2.872 trillion in bids more than seven times the N400 billion offered. The CBN allotted N1.062 trillion at a stop rate of 17.66%, easing by 4 basis points from the previous auction.
In contrast, the shorter tenors were undersubscribed:
The 91-day bill received N94.96 billion against N100 billion offered and was allotted N80.84 billion at a stop rate of 16.30%.
The 182-day bill drew N68.03 billion and was allotted N48.18 billion at 16.50%.
The one-year bill accounted for nearly 89% of the total allotment, highlighting investors’ clear preference for locking in yields over a longer period in the current interest rate environment.
Context of the Auction
This marks the second auction in July under the CBN’s expanded Q3 issuance programme, which targets N5.8 trillion in gross issuance between July and September. The strong oversubscription reflects sustained demand for government securities amid tight liquidity management and attractive real returns relative to inflation.
The latest auction result reinforces the banking sector’s continued preference for high-yielding, low-risk government paper, even as the CBN works to sterilise excess liquidity in the system. Market participants expect this trend to influence short-term interest rates and liquidity conditions in the money market over the coming weeks.
