CBN allots N1.49 trillion at June 17 NTB auction, increases stop rates

The Central Bank of Nigeria (CBN) allotted N1.49 trillion at its Wednesday June 17 Treasury bills primary market auction, hiking stop rates sharply across all three tenors.

The auction result seen by Nairametrics comes as Nigeria’s latest inflation rate of 15.93% in May continues to weigh on fixed-income market expectations, reinforcing investor demand for higher compensation on government paper.

Pricing in the rise in inflation and expectations of sustained elevated interest rates, investors piled into the one-year instrument at yields not seen in recent auction cycles.

Total subscriptions reached N1.863 trillion against an offer size of N1 trillion, translating to a bid-to-offer ratio of 1.9x, with the CBN allotting significantly above the original offer size to absorb excess system liquidity.

Stop rates expanded across all three instruments compared with the June 3 auction, with the sharpest move recorded on the 364-day bill. Highlights of the June 17 auction:

364-Day Bill (Maturity: June 2027)

The scale and distribution of demand at the June 17 auction underscore a clear investor preference for duration, with the one-year bill accounting for approximately 89.3% of total subscriptions and 86.6% of total allotments.

Nigeria’s latest inflation data has reinforced investors push for higher returns.

With consumer prices remaining elevated, returns on fixed income instruments remain compressed, pushing investors to bid aggressively at the longer end where nominal yields are more attractive.

Across recent auctions, investors have persistently shown preference for either the short-term liquidity of the 91-day bill or the superior yield of the 364-day instrument.

The CBN continues to maintain a structural spread between NTB rates and OMO instrument rates, with OMO bills stopped at 20.37% to 21.80% at the May 29 auction — preserving the tiered fixed-income architecture that has characterised the Nigerian market throughout 2026.

The June 17 NTB auction is the second consecutive cycle in which stop rates have risen across all three tenors, a new high in primary market yields after a period of relative stability. At the June 3 auctions, the monetary authorities also hiked rates across all three maturities.

Similarly, the average bond market yield surged 7 basis points to close at approximately 16.89% as of Wednesday, June 17.

The CBN’s Monetary Policy Rate remains at 26.50%, maintaining widespread above Bonds and NTB rates that continue to reflect the apex bank’s tight monetary stance.