Investors poured a massive N3.38 trillion into the 364-day Nigerian Treasury Bill at the Central Bank of Nigeria’s (CBN) primary market auction on Wednesday, July 29, 2026 — nearly seven times the N500 billion on offer.

However, the apex bank allotted a total of about N1.25 trillion across all three tenors, according to the auction result seen by Nairametrics at the close of business on Wednesday.

The auction results show the persistent and overwhelming institutional preference for the one-year instrument, even as the stop rate on that tenor declined significantly by 31 basis points.

What the data is saying:

The CBN offered a combined N700 billion — N100 billion each for the 91-day and 182-day bills, and N500 billion for the 364-day bill — in the third and final Treasury Bills auction for July 2026.

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Total subscriptions reached approximately N3.62 trillion, driven almost entirely by demand at the long end.

91-day bill (Maturity: 29 October 2026)

  • Offer: N100 billion
  • Subscription: N135.74 billion (slightly oversubscribed)
  • Allotment: N130.72 billion
  • Range of bid rates: 15.97% – 17.50%
  • Stop rate: 16.30% (unchanged)

182-day bill (Maturity: 28 January 2027)

  • Offer: N100 billion
  • Subscription: N104.74 billion (slightly oversubscribed)
  • Allotment: N99.18 billion
  • Range of bid rates: 16.00% – 25.00%
  • Stop rate: 16.50% (unchanged)

364-day bill (Maturity: 29 July 2027)

  • Offer: N500 billion
  • Subscription: N3.38 trillion (heavily oversubscribed by 6.76 times)
  • Allotment: N1.02 trillion (more than double the amount offered)
  • Range of bid rates: 16.98% – 20.00%
  • Stop rate: 17.35% (down 31 basis points from 17.66% at the previous auction)

Allotment letters are due on Thursday, 30 July 2026, with settlement on the same day, according to the CBN’s invitation to tender notice mailed to primary market dealers prior to the auction.

More insights:

Demand remained overwhelmingly concentrated on the 364-day bill, consistent with the pattern seen throughout July and earlier auctions.

  • At the July 15 auction, the one-year instrument alone attracted N2.87 trillion in bids against a N400 billion offer; at the July 8 sale it drew N1.86 trillion.
  • The sharp drop in the 364-day stop rate to 17.35% reflects improved market liquidity and investors’ willingness to accept lower yields to lock in the longer tenor.
  • The CBN’s decision to allot more than twice the advertised amount on the one-year bill continues with the recent practice of significantly overshooting offer sizes at the long end.
  • This has helped the apex bank absorb excess demand and support the government’s liquidity management and financing needs under the expanded Q3 2026 NTB programme.

Shorter tenors saw healthier participation than in some earlier July auctions, with both the 91-day and 182-day bills modestly oversubscribed and rates held steady.

What you should know:

Wednesday’s auction was the final Treasury Bills sale of the month and part of the CBN’s Q3 2026 programme targeting N5.8 trillion in gross issuance.

  • The sustained strong demand for the 364-day bill, combined with the 31-basis-point easing in its stop rate, points to both abundant system liquidity and a gradual moderation in the government’s short-term borrowing costs at the longer end of the curve.
  • Returns across all tenors remain competitive, with the one-year true yield near 21% continuing to offer the most compelling lock-in opportunity for institutional investors.

Analysts as well as some organized private sector leaders have repeatedly called on the CBN to ease stop rates across government’s primary auctions, arguing that government’s elevated interest (stop rate) for borrowing is crowding out the private sector from debt market.