CBN to Sell N700 Billion Treasury Bills Today in Second August Auction
CBN to Sell N700 Billion Treasury Bills Today in Second August Auction
The Central Bank of Nigeria (CBN), acting on behalf of the Debt Management Office (DMO), will offer N700 billion in Nigerian Treasury Bills (NTBs) at today’s auction, the second and final NTB auction scheduled for August 2026.
The offer is split across three maturities: N100 billion for the 91-day bill, N100 billion for the 182-day bill, and N500 billion for the 364-day bill.
The structure leaves the one-year Treasury Bill with the largest share of the offer, accounting for more than 70% of the total amount available at the auction.
Bidding is scheduled to run from 8:00 a.m. to 11:00 a.m. on Wednesday, August 26, through the CBN’s S4 Web Interface. The auction will be conducted using the Dutch auction system.
Each bid must be submitted in multiples of N1,000, while the minimum bid is N50.001 million. Auction results are expected today, with allotment letters scheduled for August 27.
Investors Put N4.4 Trillion Into the Last Auction
The size of today’s offer is unchanged from the previous auction on August 12, but investor demand at that sale was far larger than the amount initially offered.
Investors submitted about N4.4 trillion in bids across the three maturities, compared with the N700 billion advertised.
The 364-day bill accounted for most of the demand. It attracted about N4.19 trillion in bids against the N500 billion offered for the tenor.
The CBN subsequently allotted about N1.26 trillion of the 364-day bill, more than twice the amount initially advertised.
The shorter-dated bills also attracted bids above their respective offers, with the 91-day bill receiving about N162.21 billion and the 182-day bill about N63.97 billion in bids.
17.59% Is the Rate to Watch
The previous auction gives investors a clear reference point for today’s sale.
The 364-day Treasury Bill cleared at a 17.59% stop rate on August 12, up from 17.35% at the July 29 auction.
The 91-day bill cleared at 16.30%, while the 182-day bill stopped at 16.50%.
The key question today is whether investors will accept similar yields or demand higher rates.
A higher stop rate would mean the government is paying more to attract investors into the securities. A lower rate would point to stronger demand at lower yields.
The final rates will depend on the bids submitted during the auction.
Why the 364-Day Bill Matters Most
The 364-day instrument is again receiving N500 billion, making it the main focus for investors looking at the auction.
Its strong showing at the August 12 sale suggests there is significant appetite for locking money into government securities for a year, particularly when the offered yield remains competitive with other short-term investments.
But investors should look beyond the quoted stop rate.
Treasury Bills are sold at a discount to their face value, so the actual return depends on the price paid and the amount received when the bill matures. Investors should also consider the remaining tenor, their liquidity needs, and prevailing yields on comparable instruments before deciding how much to bid.
The August Auction Was Delayed
Today’s sale follows a disruption to the original August auction schedule.
The CBN had planned a Treasury Bills auction earlier in the month but cancelled it after conducting large Open Market Operations that drained liquidity from the banking system.
The August 12 auction subsequently went ahead, making today’s sale the second completed NTB auction for the month.
That background matters because liquidity conditions can influence both investor demand and the rates at which Treasury Bills are sold.
What Investors Should Watch Today
The headline figure is N700 billion, but the more important numbers will emerge after bidding closes.
Investors will be watching the total value of bids received, demand for each tenor, the amount allotted, and the stop rates.
The result for the 364-day bill will attract particular attention because it carries the largest allocation and generated the strongest demand at the previous auction.
If demand again comes in well above the amount offered, the CBN could have room to allot more than the advertised N500 billion to the one-year tenor, as it did on August 12.
For investors, the 17.59% stop rate recorded on the 364-day bill at the previous auction is the immediate benchmark.
Today’s results will show whether that level remains attractive to the market or whether investors are now seeking a different yield to commit funds for another year.
Source: CENTRAL BANK OF NIGERIA
