Demand for Nigerian Treasury Bills surged at the Central Bank of Nigeria (CBN) auction held on Wednesday, November 19, 2025, as investors placed N1.23 trillion in bids for the 364-day paper—far above the N450 billion on offer.
The overwhelming subscription reflects an aggressive push by market participants to secure high yields ahead of expected monetary policy easing in 2026.
Despite the intense demand, the CBN retained stop rates across all tenors.
The 91-day, 182-day and 364-day papers held steady at 15.30%, 15.50% and 16.04% respectively.
The apex bank allotted N1.03 trillion for the 364-day bill, N33.81 billion for the 91-day, and N26.41 billion for the 182-day, bringing total allotments to N1.63 trillion.
True yields remained attractive, with returns at 15.918% for the 91-day, 16.809% for the 182-day and 19.104% for the 364-day maturities.
Analysts described the unchanged rates as a sign that yields may have plateaued. Dr. Ayodeji Ebo, CEO of Optimus by Afrinvest Limited, said investors were rushing to lock in high rates before the expected interest-rate moderation in 2026.
The strong demand also outpaced the performance at the November 5 auction, where N1.18 trillion in bids was recorded across all tenors.
In contrast, the November 19 auction saw N1.23 trillion in bids for the one-year paper alone, surpassing the N1.135 trillion recorded for the same tenor earlier in the month.
The November 5 issuance saw a mild softening of stop rates on the long-dated bill, which dropped by 10 basis points from 16.14% to 16.04%.
However, the latest auction retained all rates, prompting speculation that yields are stabilising even as inflation continues to ease.
Financial analyst Kalu Aja remarked that “stop rates are unchanged even as inflation is crashing,” suggesting a shifting market sentiment.
Despite expectations that excess liquidity, limited investment alternatives, declining inflation and growing anticipation of 2026 policy adjustments might trigger rate cuts, the CBN kept the rate structure flat.
A Lagos-based fixed-income trader said the decision indicates short-term yield stability, with only slight softening possible if liquidity remains elevated.
The CBN’s recent liquidity-easing actions and improving external reserves have further boosted investor confidence.
With two consecutive auctions surpassing the N1 trillion subscription mark for the 364-day bill alone, analysts anticipate stronger competition in the upcoming December auction as investors reposition their portfolios ahead of the first quarter of 2026.
As inflation fell to 16.05% in October from 18.02% in September, many expect yields to decline gradually in the new year.
For now, Nigeria’s one-year Treasury Bills, offering over 19% effective returns, remain the most attractive risk-free instrument for investors seeking to lock in high yields before the expected downward cycle begins.
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