March 26, (THEWILL) — The Central Bank of Nigeria (CBN) trimmed stop rates on longer-dated Treasury bills at its March 25 auction, even as investors flooded the market with ₦2.7 trillion in bids, underscoring strong appetite amid excess liquidity.
Stop rates on the 182-day and 364-day bills declined by 20 basis points to 16.42 percent and 16.43 percent, respectively, while the 91-day bill held steady at 15.95 percent. The rate cuts reflect easing yield pressures despite robust demand, particularly for longer tenors.
The CBN offered ₦400 billion across the three maturities, but subscriptions were heavily skewed. The 364-day bill attracted ₦2.73 trillion in bids for a ₦200 billion offer, with ₦394.88 billion allotted. In contrast, the 91-day and 182-day bills were undersubscribed at ₦98.71 billion and ₦66.58 billion, respectively.
Analysts attribute the strong demand for longer-dated instruments to investors seeking to lock in attractive yields around 19.66 percent amid a liquidity glut estimated at over ₦8 trillion.
Lower Treasury bill maturities, estimated at ₦579 billion compared to ₦711.16 billion earlier in March, also reduced refinancing pressures and supported demand.
Overall, the auction highlights selective investor appetite and reinforces expectations that strong system liquidity will continue to shape yields and sustain demand for government securities in the near term.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
