The Central Bank of Nigeria (CBN) saw an oversubscription at the Nigerian Treasury Bill auction on Wednesday, as liquidity floods the market.
A total of NGN550 billion was offered across the three maturities – N50 billion in 91-day bills, N100.00bn in 182-day bills, and N400 billion in 364-day bills.
Demand for the government securities was double the offer, though total subscriptions fell to N1.08 trillion from N1.53 trillion at the prior auction.
This led to yields remaining unchanged across the tenors except for a slight increase to 24.41 percent from 24.36 percent on the 365-day bill.
Yields have hovered around the same level over the last four auctions.
The 181-day and 90-day yields remained unchanged on Wednesday at 20.38 percent and 18.85 percent, respectively.
Matilda Adefalujo, a fixed-income analyst at Meristem stated in a report projected rates to remain stable across the three maturities, with a slight downward bias.
Read also: Rate cut uncertainty, tariff wars spark demand for 91-day NT-bills
“This outlook is supported by robust system liquidity. Furthermore, the government’s commitment to curbing borrowing costs and prevailing investor sentiment reinforce expectations of steady yields,” she said.
System liquidity was N1.21 trillion as of May 6, 2025, added to a maturing bills worth N287.98 billion together was more than triple the N550 billion on offer.
The CBN allotted N598.33 billion across the three maturities.
The 365-day bill accounted for 80 percent of total sales and subscriptions, amounting to a sale of N482.62 billion of the tenor.
The 81-day bill saw the lowest demand and sales of all tenors, with only N48.4 billion subscriptions and even lower sales of N38.4 billion.
Total sales of the Treasury bills sales year-to-date now amount to N7.248 trillion
