Subscriptions Top N1.5trn At Central Bank’s 2026 First Treasury Bills Auction

The Central Bank of Nigeria’s (CBN) first Treasury bills auction for 2026 saw subscriptions rise above N1.5 trillion, despite higher stop rates across all tenors.

Additionally, banks in the country deposited N14.07 trillion with the apex bank through the standing deposit window during the first few trading days of the year.

Data from the CBN showed that while deposits by banks at the SDF window remained high, they were still less than the deposits with the apex bank in the last week of last year.

The data showed that a total of N14.074 trillion was placed with the CBN between January 2 and January 9, 2026, compared to N21.116 trillion that was put through the SDF between December 22 and 31, 2025.

This year, the highest amount was placed on the first Monday of the year, as banks deposited N3.21 trillion with the CBN and also took out N758 billion from the CBN through the Standing Lending Facility.

Meanwhile, at the first primary market auction, the apex bank offered a total of N1.15 trillion across the 91-day, 182-day and 364-day tenors.

Total subscriptions came in at N1.54 trillion, slightly higher than the N1.51 trillion recorded at the previous auction, underscoring sustained demand for government securities. The CBN eventually allotted N1.15 trillion, resulting in a bid-to-cover ratio of 1.00x and a subscription-to-offer ratio of 1.34x.

Stop rates edged higher at the auction, with the 91-day paper clearing at 15.80 per cent, the 182-day tenor at 16.50 per cent, and the 364-day instrument at 18.47 per cent, compared with 15.50 per cent, 15.95 per cent and 17.51 per cent, respectively, at the last auction.

Similarly, investor demand remained firm at the first Open Market Operations auction of the year, where total subscriptions surged to N2.73 trillion against an offer size of N600 billion. This translated to a subscription-to-offer ratio of 4.55x, reflecting aggressive demand, particularly for the 210-day instrument, which attracted bids of N2.45 trillion. Total allotment stood at N2.71 trillion, with a bid-to-cover ratio of 1.01x, while stop rates settled at 19.34 per cent for the 161-day tenor and 19.40 per cent for the 210-day paper.

In the secondary Treasury bills market, sentiment turned bearish as average yields rose by 30 basis points to 18.02 per cent from 17.72 per cent in the previous week. The sell-off was concentrated in mid to long-dated maturities, with notable yield increases recorded on the 18 June 2026, 3 December 2026 and 10 December 2026 bills, which outweighed selective buying interest observed during the week.

The bearish tone also extended to the secondary bond market, where average yields climbed by 21 basis points to 16.76 per cent. Sell-offs were broad-based across the curve but were more pronounced at the mid-segment, as reflected in higher yields on the April 2029, August 2030, February 2031, May 2033 and June 2033 bonds.

Eurobonds were not spared from the weak sentiment, as average yields rose by 21 basis points to 7.24 per cent from 7.03 per cent in the preceding week, following sell-offs across all maturities.