The Central Bank of Nigeria (CBN) is set to open ₦1.15 trillion worth of Nigerian Treasury Bills for investor subscription on Wednesday, in line with its February primary market auction programme.
The offer will be split across the 91-day, 182-day and 364-day tenors, coming amid recent spot rate adjustments at earlier auctions and a shifting inflation outlook.
Market participants expect demand to remain strong, supported by healthy liquidity conditions in the financial system. Analysts anticipate inflows of around ₦6 trillion this week, which could strengthen funding conditions and point to potential tightening in discount rates as inflation expectations evolve.
In the broader treasury market, yield movements were mixed despite ongoing funding pressures. Nigerian Treasury Bills (NITTY) yields edged lower as investors positioned ahead of the upcoming primary market auction, while activity in the secondary market remained subdued, according to Cowry Asset Limited.
The investment firm noted that the treasury bills market remained bullish, with demand concentrated at the long end of the yield curve. This trend drove a 35 basis point decline in average yields, highlighting sustained investor appetite for longer-duration instruments despite tight liquidity conditions.
Liquidity management continued to dominate market activity, with the CBN maintaining an aggressive stance through multiple open market operation (OMO) auctions.
On Tuesday, the apex bank offered ₦600 billion across the 210-day and 350-day maturities, attracting subscriptions totalling ₦4.9 trillion. However, no allotments were made, signalling resistance to prevailing bid levels.
Demand strengthened further at Thursday’s auction, particularly for longer tenors. The 348-day instrument attracted ₦4.57 trillion in bids against an offer of ₦300 billion, while the 208-day bill received ₦1.36 trillion in subscriptions.
Despite an initial offer size of ₦600 billion, the CBN intensified its liquidity mop-up, allotting a total of ₦3.79 trillion, with the 348-day tenor accounting for ₦3.70 trillion of the sales.
At Friday’s OMO auction held on January 30, 2026, two maturities - the 207-day and 354-day bills - were offered at ₦300 billion each.
The 207-day bill, maturing on August 25, 2026, attracted ₦396.14 billion in subscriptions, with bid yields ranging from 17.6990 per cent to 19.0400 per cent. No allotment was made, suggesting continued reluctance by the issuer to accommodate higher short-end rates, Cowry Asset Limited said.
In contrast, the 354-day instrument maturing on January 19, 2027, drew ₦2.17 trillion in bids, with yields between 17.1500 per cent and 18.4400 per cent.
The paper cleared at a stop rate of 17.25 per cent, with total allotment reaching ₦2.11 trillion, well above the initial offer, underscoring strong investor preference for longer-dated OMO instruments.
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