T Bills Attract N1.5trn As Investors Lock Into Higher Yields At 2026 Opening Auction

Investor demand stayed firm at the Central Bank of Nigeria’s first Treasury bills auction of 2026. Total subscriptions crossed N1.5 trillion despite higher stop rates across all maturities.

The CBN offered N1.15 trillion across 91-day, 182 day, and 364-day tenors. Investors submitted N1.54 trillion in bids, above the N1.51 trillion recorded at the previous auction. The apex bank allotted the full amount on offer. The subscription to offer ratio stood at 1.34x.

Stop rates moved upward. The 91-day bill cleared at 15.80 percent. The 182-day paper settled at 16.50 percent. The 364-day instrument closed at 18.47 percent. Each tenor priced above levels from the prior auction. This confirmed investor willingness to accept higher rates in exchange for sovereign safety.

For the financial sector, the auction signals sustained liquidity within the system. Strong demand supports government short term funding while reinforcing Treasury bills as a key liquidity management tool. Higher stop rates also reprice short term yields across money markets.

For households, the outcome affects savings decisions. You earn higher returns on fixed income investments tied to Treasury bills. Banks adjust deposit and savings rates in response to rising benchmark yields. Borrowing costs for personal and small business loans face upward pressure.

Market implications remain broad. Strong participation reflects preference for risk free assets amid tightening financial conditions. Higher primary market yields pushed secondary market sentiment lower. Treasury bill yields in the secondary market rose by 30 basis points to 18.02 percent. Selling pressure concentrated on mid to long dated bills.

The bond market followed a similar path. Average yields climbed to 16.76 percent. Sell offs appeared stronger in the mid segment of the curve. This shift signals portfolio rebalancing toward shorter duration assets.

Risks sit in rising funding costs. Higher yields lift government interest expenses over time. Elevated rates also weigh on private sector credit growth and equity market appetite.

Opportunities remain visible for investors. Short term instruments offer attractive yields with limited duration risk. Active portfolio management benefits from volatility across the curve. You gain flexibility by locking funds into higher yielding instruments while preserving near term liquidity.