The Central Bank of Nigeria (CBN) saw its Treasury bill yields decline at the latest weekly auction, driven by a sevenfold jump in oversubscription.
The surge in demand indicates that investors are aggressively seeking safe-haven assets within the Nigerian domestic market, even as the central bank continues its campaign to drain excess liquidity from the banking system.
8 trillion ($3.7 billion) Treasury bill auction program for the third quarter of 2026.
The sharp increase in bid-to-cover ratios allowed the CBN to place its paper at lower discount rates compared to previous sessions.
This repricing reflects a shift in market sentiment where the scarcity of high-quality collateral is outweighing the central bank's hawkish stance on money market rates.
The one-year benchmark, which had climbed to 17.70% in recent weeks amid tight liquidity conditions, faced downward pressure as institutional buyers competed for the available supply.
This development comes as the CBN has scheduled a massive N5.8 trillion ($3.7 billion) Treasury bill auction program for the third quarter of 2026.