Nigeria’s Treasury Bills Auction Sees Strong Demand for 364-Day Tenor

The Central Bank of Nigeria (CBN) has released the results of its Treasury Bills (T-Bills) auction conducted on February 5, 2025.

The auction featured three tenors – 91-day, 182-day, and 364-day – and witnessed a strong investor appetite, particularly for the one-year instrument.

Investors showed overwhelming interest in the 364-day bills, with subscriptions exceeding N3.1 trillion against the N500 billion offered.

This reflects the preference for higher-yielding, longer-tenured securities amidst current market conditions.

In contrast, the 91-day and 182-day bills saw lower-than-offered subscription levels, with the 182-day instrument recording a significant shortfall.

The stop rates for the three tenors settled at 18%, 18.5%, and 20%, respectively, reflecting the tight liquidity conditions and investor demand for higher returns.

The CBN’s allocation of N619.36 billion for the 364-day bills indicates a strategic effort to attract liquidity for government financing while balancing market interest rates.

The results of this auction suggest that investors are leaning toward longer-tenured instruments to lock in higher yields, given expectations of future monetary policy adjustments.

With inflation concerns and tight monetary conditions persisting, the demand for risk-free government securities remains robust.

This trend could influence future bond yields and impact overall liquidity in the fixed-income market.