The Central Bank of Nigeria (CBN) successfully allotted N1.06 trillion at its Treasury bills primary market auction held on Wednesday, July 8, 2026. This auction saw a significant increase in the stop rate for the one-year bill, which rose to 17.70% from 17.34% recorded at the June 17 auction, while the mid-tenor rate remained unchanged.
Auction results indicate robust investor interest, with total subscriptions amounting to approximately N2.03 trillion against an offer size of N700 billion. This translates to a bid-to-offer ratio of about 2.9 times, highlighting strong demand in the market.
Consistent with previous auctions, the 364-day bill continued to be the most sought-after instrument, attracting N1.86 trillion in bids alone. This auction marks the first major issuance under the CBN’s expanded Q3 2026 NTB Issuance Programme, which aims to issue N5.8 trillion in gross bills between July and September.
The stop rates saw an increase on both the short and long ends of the curve compared to the June 17 auction, while the 182-day bill maintained its rate. The total offered amount was N700 billion, with total subscriptions at N2.03 trillion, and total allotment reaching N1.06 trillion, approximately 52% above the initial offer size.
A detailed breakdown by tenor reveals the following:
364-Day Bill (Maturity: July 8, 2027)
- Offer: N500 billion
- Subscription: N1.86 trillion (3.7x oversubscribed)
- Allotment: N935.32 billion
- Range of bids: 16.55% – 20.32%
- Stop rate: 17.70% (up 36 basis points from 17.34% at the June 17 auction)
182-Day Bill (Maturity: January 7, 2027)
- Offer: N100 billion
- Subscription: N29.94 billion (undersubscribed)
- Allotment: N13.76 billion
- Range of bids: 15.75% – 17.30%
- Stop rate: 16.50% (unchanged from June 17)
91-Day Bill (Maturity: October 8, 2026)
- Offer: N100 billion
- Subscription: N146.54 billion (oversubscribed)
- Allotment: N115.38 billion
- Range of bids: 15.50% – 18.00%
- Stop rate: 16.30% (up 2 basis points from 16.28% at the June 17 auction)
The one-year bill continues to dominate investor demand, accounting for about 91% of total subscriptions and approximately 88% of total allotment. This indicates a strong preference among investors to lock in yields over a longer period.
Conversely, the 182-day bill was the weakest performer, with subscriptions of just N29.94 billion, representing about 30% of the N100 billion on offer, making it the only undersubscribed tenor. The 91-day bill was oversubscribed, but its stop rate of 16.30% showed only a marginal increase, suggesting short-term pricing remained relatively stable.
Notably, the 36 basis point jump on the 364-day bill occurred despite the CBN's earlier indicative rate suggesting it planned to keep the rate unchanged at 17.34% for July issuance. The auction also resulted in a net withdrawal of N269.36 billion from the banking system, as N94.82 billion in 91-day bills, N48.23 billion in 182-day bills, and N126.31 billion in 364-day bills matured on the same day.
This July 8 auction marks the third consecutive instance where the CBN has increased the one-year stop rate, following similar adjustments at the June 3 and June 17 auctions. Looking ahead, the CBN plans to offer N600 billion in bills on July 15, with no major maturities expected. On July 22, no new bill sales are planned, but N378.43 billion in bills will mature, injecting funds back into the banking system. The month will conclude with the CBN offering N700 billion in new bills on July 29, again with no major maturities anticipated.
For the entire month of July, the CBN aims to sell N2 trillion in Treasury bills against only N647.79 billion in maturing bills. This strategy will result in the largest planned monthly net withdrawal of funds through Treasury bills so far in 2026. The CBN’s Monetary Policy Rate remains at 26.50%, keeping bond and NTB yields below the benchmark rate but still higher than the May inflation rate of 15.93%, aligning with the apex bank’s tight monetary policy stance for the second half of 2026.
