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Investors continued to favour longer-dated Nigerian Treasury bills at the November 11, 2026 auction, committing more than N1.07 trillion to the 364-day instrument as demand for shorter-term securities remained relatively weak.
The one-year Treasury bill attracted subscriptions of N1.079 trillion, almost 180% of the N600 billion offered by the Central Bank of Nigeria (CBN). It accounted for approximately 96.2% of total bids across the three available maturities, highlighting investors’ strong preference for locking in returns over a 12-month period.
By comparison, the 91-day instrument attracted subscriptions of N19.18 billion, while the 182-day bill received N23.02 billion, against an offer of N100 billion for each tenor.
Data from the auction, conducted by the CBN on behalf of the Debt Management Office (DMO), showed that total subscriptions reached approximately N1.12 trillion, while actual allotments stood at N713.31 billion against the N800 billion offered.
The 364-day instrument received N672.91 billion in allotments, exceeding its initial offer by N72.91 billion. The 91-day and 182-day securities attracted allotments of N18.12 billion and N22.28 billion, respectively.
Consequently, the one-year bill accounted for approximately 94.3% of total allotments, reinforcing the concentration of investor demand in the longest available maturity.
Investors favour one-year bills despite narrow yield differences
The strong preference for the 364-day instrument came despite relatively small differences in stop rates across the three maturities.
The CBN maintained the stop rate on the 91-day Treasury bill at 15.40% and the 182-day instrument at 15.79%. However, the rate on the 364-day bill rose by nine basis points to 15.89%, compared with 15.80% at the previous auction.
This left investors earning just 49 basis points more by choosing the one-year security over the 91-day bill and 10 basis points more than the six-month instrument.
The relatively narrow yield premium suggests that investors were willing to commit their funds for an additional six to nine months without requiring a substantially higher return.
The DMO had offered N800 billion across the three maturities, with the 364-day instrument accounting for 75% of the advertised amount. The CBN eventually allotted N713.31 billion, leaving N86.69 billion of the offer unallotted.
Demand for longer-dated Treasury bills remains strong
The latest auction extends a pattern of concentrated demand for longer-term Treasury bills recorded in recent months.
At the November 4 auction, investors submitted N1.994 trillion in bids for the 364-day instrument, while the 91-day and 182-day securities attracted N25.01 billion and N25.83 billion, respectively.
The one-year bill accounted for approximately 96% of total subscriptions at that auction, even as the CBN maintained stop rates at 15.40%, 15.79% and 15.80% across the three maturities.
The repeated preference for the longest available tenor indicates that investors continue to favour the opportunity to secure returns over a longer investment period, despite the relatively modest premium over shorter-term securities.
Secondary market yields offer mixed investment signals
Developments in the secondary market also present a mixed picture for investors comparing newly issued Treasury bills with existing securities.
As of November 11, the secondary-market yield on the 91-day Treasury bill stood at 17.40%, two percentage points above its primary-market stop rate of 15.40%.
For the 182-day instrument, the primary-market stop rate was 21 basis points below its corresponding secondary-market yield. In contrast, the 364-day stop rate was 19 basis points above its secondary-market equivalent.
These differences indicate that investors may be considering not only the returns available at primary auctions but also the relative yields offered by existing securities in the secondary market when making investment decisions.
Government borrowing benefits from concentrated investor demand
For the Federal Government, strong demand for the one-year instrument provides an opportunity to raise substantial funds without significantly increasing borrowing costs across the Treasury bill yield curve.
The ability to attract subscriptions well above the amount offered also reflects continued investor appetite for government securities, particularly at the longer end of the short-term debt market.
For investors, the sustained preference for the 364-day bill highlights the appeal of securing a relatively higher return over a longer period, even when the additional yield over shorter maturities is marginal.
The latest auction therefore reinforces the growing concentration of demand in one-year Treasury bills, with investment decisions appearing to favour longer holding periods and relatively predictable returns over shorter-term liquidity.
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