CBN Slashes NTB Yields as N4.27trn Demand Floods Auction
The Central Bank of Nigeria (CBN) cut yields on 91-day and 364-day Nigerian Treasury Bills (NTBs) at its midweek primary market auction, capitalising on overwhelming investor demand that saw subscriptions soar to N4.274 trillion.
Despite widening real interest rates along the naira yield curve, the apex bank left the 182-day bill rate unchanged following comparatively weak appetite for the mid-tenor instrument.
The CBN offered a total of N1.15 trillion across the standard maturities, comprising N150 billion for 91-day bills, N200 billion for 182-day bills, and a sizeable N800 billion for the 364-day tenor. Strong expectations of robust participation, particularly at the long end of the curve, drove the elevated offer on one-year paper.
Auction results showed investor demand heavily skewed towards duration. While the 91-day bill attracted N105.05 billion in subscriptions against the N150 billion on offer, and the 182-day instrument drew N93.75 billion, the 364-day paper recorded a staggering N4.075 trillion in bids, accounting for more than 95 per cent of total subscriptions.
The significant oversubscription at the long end provided the CBN room to compress yields. The stop rate on the 91-day bill was reduced to 15.80 per cent, while the 364-day tenor was trimmed to 15.90 per cent. The 182-day bill rate was maintained at 16.65 per cent.
The outcome underscores sustained investor confidence in short-term sovereign instruments and a growing preference for locking in attractive yields amid expectations of evolving monetary conditions.
