CBN lowers T-bill yield as oversubscription jumps sevenfold

Investors poured a massive N3.38 trillion into the 364-day Nigerian Treasury Bill at the Central Bank of Nigeria’s (CBN) primary market auction on Wednesday, July 29, 2026 — nearly seven times the N500 billion on offer.

However, the apex bank allotted a total of about N1.25 trillion across all three tenors, according to the auction result seen by Nairametrics at the close of business on Wednesday.

The auction results show the persistent and overwhelming institutional preference for the one-year instrument, even as the stop rate on that tenor declined significantly by 31 basis points.

The CBN offered a combined N700 billion — N100 billion each for the 91-day and 182-day bills, and N500 billion for the 364-day bill — in the third and final Treasury Bills auction for July 2026.

Total subscriptions reached approximately N3.62 trillion, driven almost entirely by demand at the long end.

91-day bill (Maturity: 29 October 2026)

182-day bill (Maturity: 28 January 2027)

364-day bill (Maturity: 29 July 2027)

Allotment letters are due on Thursday, 30 July 2026, with settlement on the same day, according to the CBN’s invitation to tender notice mailed to primary market dealers prior to the auction.

Demand remained overwhelmingly concentrated on the 364-day bill, consistent with the pattern seen throughout July and earlier auctions.

Shorter tenors saw healthier participation than in some earlier July auctions, with both the 91-day and 182-day bills modestly oversubscribed and rates held steady.

Wednesday’s auction was the final Treasury Bills sale of the month and part of the CBN’s Q3 2026 programme targeting N5.8 trillion in gross issuance.

Analysts as well as some organized private sector leaders have repeatedly called on the CBN to ease stop rates across government’s primary auctions, arguing that government’s elevated interest (stop rate) for borrowing is crowding out the private sector from debt market.