The Central Bank of Nigeria (CBN) has allotted a total of N829.32 billion across its three Treasury bill maturities at the Primary Market Auction held on Tuesday, May 20, 2026, amid strong investor demand that significantly exceeded the size of the offer.
Auction results showed that total subscriptions surged to about N1.99 trillion, far above the N650 billion offered across the 91-day, 182-day, and 364-day instruments, highlighting sustained liquidity in the financial system and continued appetite for risk-free government securities.
What the data is saying
Demand was heavily skewed toward longer-dated instruments, particularly the 364-day bill, which dominated subscriptions.
▪ The 364-day bill attracted N1.84 trillion in bids against an offer of N500 billion, with the CBN allotting N683.29 billion, reflecting a subscription-to-offer ratio of about 3.7x.
▪ The 182-day bill recorded subscriptions of N81.04 billion versus N50 billion offered, with allotments of N78.59 billion.
▪ The 91-day bill was the weakest, drawing N68.63 billion against an offer of N100 billion, with only N67.45 billion allotted.
The outcome reflects a clear investor preference for longer-dated instruments, as market participants continue to lock in elevated yields amid macroeconomic uncertainty.
More insights
Stop rates across all tenors remained largely stable, indicating balanced liquidity conditions and limited upward pressure on yields despite strong demand.
▪ The 91-day stop rate edged slightly higher to 15.95%.
▪ The 182-day rate remained unchanged at 16.14%.
▪ The 364-day rate eased marginally to 16.149%, down from 16.15%.
The relatively weak demand for the 91-day bill suggests investors are less interested in short-term placements, preferring to extend duration in anticipation of potential yield moderation in the future.
What you should know
The latest auction continues a pattern of strong oversubscription seen in previous CBN Treasury bill sales, including the May 6 auction where total subscriptions hit N2.41 trillion against an offer of N700 billion.
Demand has consistently been led by the 364-day instrument, reflecting expectations that current yield levels may represent a near-term peak.
Earlier in April 2026, similar auctions also recorded heavy oversubscriptions, reinforcing sustained appetite for government securities as investors seek to preserve returns in a high-interest-rate environment.
Overall, the trend suggests the fixed-income market may be approaching a short-term yield plateau, with future movements likely dependent on inflation dynamics, liquidity conditions, and Central Bank policy direction.
