Investors oversubscribe one-year T-bills as demand hits N2.89trn

Investors poured into one-year Treasury bills at the latest auction, with subscriptions rising to N2.89 trillion—more than three times the N800 billion offered—highlighting strong appetite for high-yield, longer-term instruments.

Data from the Central Bank of Nigeria (CBN) shows that the 364-day bill attracted the bulk of demand, with N542.64 billion eventually allotted to investors.

Ayodeji Ebo, Managing Director of Optimus by Afrinvest, said the trend reflects a strategy by investors to lock in attractive yields for longer durations amid prevailing market conditions.

Across the auction, the CBN offered N1.05 trillion spanning 91-day, 182-day, and 364-day tenors. While the 91-day bill saw mild oversubscription, the 182-day instrument recorded weaker demand, attracting N66.99 billion against an offer of N150 billion.

Yields showed mixed movements. The 364-day bill’s stop rate eased slightly to 16.63 per cent, with a true yield of about 19.95 per cent, indicating strong liquidity and institutional participation.

The 182-day bill also declined marginally to 16.62 per cent, while the 91-day rate held steady at 15.95 per cent.

Analysts at Meristem Securities attributed market behaviour partly to global developments, noting that geopolitical tensions in the Middle East triggered sell-offs that pushed yields higher ahead of the auction.

Despite this, strong system liquidity—boosted by maturing Treasury bills worth about N579 billion—supported robust participation.