Oversubscription, Higher Yields Mark CBN Treasury Bills Auction
The Central Bank of Nigeria’s (CBN) Treasury Bills auction on October 22, 2025, recorded a significant N100.91 billion oversubscription, as total bids reached N750.91 billion against the N650 billion offered.
This robust demand, despite ongoing liquidity tightening, drove stop rates higher across all maturities.
The government, however, chose to allot only N391.58 billion, signalling a desire to scale down its debt obligations.
Higher Stop Rates and Dominant Demand for Longer Tenors
Data from the Debt Management Office (DMO) confirmed that stop rates increased across the board, pushing true yields even higher and reinforcing investor preference for long-term premium returns in an inflationary environment.
| Tenor | New Stop Rate | Previous Stop Rate | True Yield |
| 91-Day | 15.30\% | 15.00\% | 15.92\% |
| 182-Day | 15.50\% | 15.25\% | 16.81\% |
| 364-Day | 16.14\% | 15.77\% | 19.25\% |
Investor interest was heavily concentrated in the 364-day paper, which attracted the bulk of subscriptions with an impressive N674.25 billion in bidsnearly 10 times the combined interest for the two shorter tenors.
A total of N316.56 billion was allotted for the one-year bill. In comparison, the 91-day and 182-day papers saw N8.13 billionand N68.53 billion in subscriptions, respectively.
Analysts Advise Locking In Yields
Market analysts attribute the rise in rates to a combination of strong subscription levels and the CBN’s strategy to balance inflation control with market demand.
Analysts, including Dr. Ayodeji Ebo of Optimus by Afrinvest, advised investors to “consider locking into the longer-tenored bills before the rates start trending down.”
They noted that the heavy demand for longer tenors, with the true yield for the 364-day bill exceeding 19\%, reflects investors’ urgency to secure current high returns. Analysts anticipate that as liquidity improves and monetary pressures ease, the CBN is likely to adjust stop rates downward, making Treasury Bills a currently attractive low-risk option for investors seeking stable returns.
