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Treasury bill stop rates fell 70–80 basis points across all three tenors at Wednesday’s auction.
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The 364-day bill attracted ₦4.09trn in subscriptions against ₦400bn offered, accounting for about 97 percent of total demand.
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The one-year NTB stop rate has fallen 181 basis points from its July peak of 17.70 percent to 15.89 percent.
September 25, (THEWILL) – Treasury bill stop rates fell sharply across all three maturities at Wednesday’s primary market auction, extending the repricing of Nigeria’s short-term fixed-income market following the Central Bank of Nigeria’s 350-basis-point interest-rate cut.
The 91-day Treasury bill recorded the largest decline, with its stop rate falling 80 basis points to 15.50 percent from 16.30 percent.
The 182-day bill followed with a 70-basis-point decline to 15.80 percent from 16.50 percent, while the 364-day bill dropped 73 basis points to 15.89 percent from 16.62 percent.
The auction came a day after the CBN cut its Monetary Policy Rate from 26.50 percent to 23 percent, accelerating the adjustment in short-term government securities yields.
364-Day Bill Dominates Demand
Demand remained heavily concentrated at the long end of the curve, with subscriptions for the 364-day NTB reaching ₦4.09 trillion against an advertised offer of ₦400 billion.
The Debt Management Office allotted ₦447.07 billion, exceeding the offer by ₦47.07 billion.
The latest stop rate extends the decline in the one-year bill from its 2026 peak. The 364-day NTB cleared at 17.70 percent on July 8, meaning the latest 15.89 percent rate represents a 181-basis-point decline.
Its secondary-market rate stood at 15.60 percent, below the latest primary-market stop rate.
For the 91-day bill, the DMO offered N100bn but received ₦54.93 billion in subscriptions and allotted ₦11.03 billion. Its secondary-market rate was 17 percent, 150 basis points above the latest auction stop rate.
The 182-day bill attracted ₦82.23 billion in subscriptions against ₦100 billion offered, with ₦39.49 billion allotted. Its secondary-market rate stood at 15.90 percent, just 10 basis points above the auction stop rate.
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Market Adjusts To Lower-Rate Cycle
Across the three maturities, investors submitted a combined ₦4.23 trillion against ₦600 billion offered, with the 364-day tenor accounting for roughly 97 percent of total demand.
The latest auction marks a significant shift from the elevated yield environment seen earlier in the third quarter, when investors demanded higher returns amid the CBN’s tight monetary policy stance.
The fall in stop rates indicates that the fixed-income market is already adjusting to the lower policy-rate environment.
For the government, the repricing could reduce the cost of new short-term borrowing. For investors, however, the decline means lower yields on newly issued Treasury bills and potentially greater pressure to seek returns in longer-dated securities, corporate debt or other asset classes.
The direction of subsequent auctions will depend on how quickly the CBN’s rate cut is transmitted through money-market liquidity, bank funding costs and investor expectations.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
