Investors flocked to the Central Bank of Nigeria’s Treasury Bills auction on March 4, 2026, demonstrating strong demand for government securities amid a high-yield environment.
Strong Investor Response
In total, they submitted ₦2.34 trillion in bids, far exceeding the ₦1.05 trillion on offer, and by the close of business, the CBN had allotted ₦1.01 trillion across the three tenors.
Preference For Long-Term Bills
Notably, investors showed a clear preference for longer-term instruments.
The 364-day bill attracted the majority of bids, receiving ₦2.13 trillion against an ₦800 billion offer, with the CBN allotting ₦856.03 billion.
Meanwhile, the 91-day and 182-day bills drew lower interest, gathering ₦80.92 billion and ₦136.54 billion in bids, and the CBN allotted ₦64.27 billion and ₦91.43 billion respectively.
Stop rates highlighted this appetite for yield.
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Specifically, the 364-day tenor rose sharply to 16.73%, up 0.83% points from the previous auction.
At the same time, the 91-day bill edged up to 15.95%, while the 182-day remained steady at 16.65%.
This jump in the one-year bill indicates that investors are actively pricing in duration risk and potential changes in interest rates.
Auction Mechanics And Market Outlook
Furthermore, the CBN conducted the auction through its Scripless Securities Settlement System, using a Dutch auction format that ensured efficiency and transparency.
Successful bids matched the rates investors were willing to accept, and the CBN will settle the transactions on March 5, 2026.
Overall, the strong oversubscription, particularly for the long tenor, underscores robust liquidity in the financial system.
It also shows investors’ cautious optimism as they seek attractive returns while monitoring macroeconomic conditions and CBN monetary policy actions.
