Subscription to T-Bills Tops N1.5trn at First 2026 Auctions on Massive Demand

Nume Ekeghe

Investors’ appetite remained strong at the Central Bank of Nigeria’s (CBN) first Treasury bills auction of 2026, with subscriptions rising above N1.5 trillion despite higher stop rates across all tenors.

At the primary market auction held last week, the CBN offered a total of N1.15 trillion across the 91-day, 182-day and 364-day tenors. Total subscriptions came in at N1.54 trillion, slightly higher than the N1.51 trillion recorded at the previous auction, underscoring sustained demand for government securities. The CBN eventually allotted the full N1.15 trillion on offer, resulting in a bid-to-cover ratio of 1.00x and a subscription-to-offer ratio of 1.34x.

Stop rates edged higher at the auction, with the 91-day paper clearing at 15.80 per cent, the 182-day tenor at 16.50 per cent and the 364-day instrument at 18.47 per cent, compared with 15.50 per cent, 15.95 per cent and 17.51 per cent respectively at the previous auction.

Meristem Securities in its breakdown of activity said: “In the primary market, the CBN held its first Treasury bills (T-bills) auction for the year 2026 during the week, offering a total of NGN1.15bn across all tenors. Investor appetite was robust with total subscriptions reaching NGN1.54trn vs. N1.51trn at the last auction. Total allotment stood at N1.15trn, translating to a bid-to-cover ratio of 1.00x and a subscription-to-offer ratio of 1.34x. Stop rates inched higher to 15.80% for the 91-day tenor, 16.50 per cent for the 182-day tenor, and 18.47 per cent for the 364-day tenor vs. 15.50 per cent, 15.95, and 17.51 per cent previously.

“Similarly, investor demand remained firm at the first Open Market Operations (OMO) auction of the year, where total subscriptions rose to N2.73 trillion against an offer size of N600 billion. This translated to a subscription-to-offer ratio of 4.55x, reflecting strong demand, particularly for the 210-day instrument which attracted bids of N2.45 trillion. Total allotment stood at N2.71 trillion, with a bid-to-cover ratio of 1.01x, while stop rates settled at 19.34 per cent for the 161-day tenor and 19.40 per cent for the 210-day paper.”

It added, “In the secondary Treasury bills market, sentiment turned bearish as average yields rose by 30 basis points to 18.02 per cent from 17.72 per cent in the previous week. Sell-offs were concentrated in mid- to long-dated maturities, with notable yield increases recorded on the 18 June 2026, +76bps, 3 December 2026, +128bps and 10 December 2026, +102bps bills, which outweighed selective buying interest observed during the week.

“The bearish tone also extended to the secondary bond market, where average yields climbed by 21 basis points to 16.76 per cent. Sell-offs were broad-based across the curve but were more pronounced at the mid segment, as reflected in higher yields on the April 2029, +53bps, August 2030 +97bps, February 2031, +38bps, May 2033, +50bps and June 2033, +42bps bonds.”