T-Bills Kick Off 2026 with a Bang as Investors Pour Over ₦1.5 Trillion into CBN Auction
Nigeria’s fixed-income market opened 2026 on a very strong note, as investors showed massive appetite for government securities at the Central Bank of Nigeria’s (CBN) first Treasury Bills (T-Bills) auction of the year.
Despite higher interest rates across all tenors, demand remained resilient—highlighting investors’ preference for safe, high-yield instruments amid ongoing macroeconomic uncertainties.
Auction at a Glance
At the primary market auction held last week:
• Amount offered: ₦1.15 trillion
• Total subscriptions: ₦1.54 trillion
• Amount allotted: ₦1.15 trillion (full allotment)
This resulted in:
• Subscription-to-offer ratio: 1.34x
• ⚖️ Bid-to-cover ratio: 1.00x
The figures slightly exceeded the ₦1.51 trillion recorded at the previous auction, confirming sustained investor demand for T-Bills.
Higher Stop Rates Across All Tenors
Interest rates moved upward at the auction, reflecting tighter monetary conditions:
• ⏱ 91-day T-Bill: 15.80% (from 15.50%)
• ⏳ 182-day T-Bill: 16.50% (from 15.95%)
• 364-day T-Bill: 18.47% (from 17.51%)
The longer-dated 364-day instrument continued to attract strong interest due to its relatively higher yield.
OMO Auction Also Records Heavy Demand
Investor appetite was even stronger at the first Open Market Operations (OMO) auction of 2026:
• Offer size: ₦600 billion
• Total subscriptions: ₦2.73 trillion
• Subscription-to-offer ratio: 4.55x
• ✅ Total allotment: ₦2.71 trillion
Most of the demand was concentrated in the:
• 210-day OMO bill, which alone attracted ₦2.45 trillion in bids.
Stop rates settled at:
• ⏱ 161-day tenor: 19.34%
• 210-day tenor: 19.40%
Secondary Market Turns Bearish
Despite strong demand at auctions, sentiment weakened in the secondary market:
Treasury Bills:
• Average yield rose by 30 basis points to 18.02%
• Sell-offs were strongest in mid- to long-dated bills, especially June–December 2026 maturities
Bonds:
• Average bond yields increased by 21 basis points to 16.76%
• Heaviest sell-offs occurred in mid-tenor bonds (2029–2033 maturities)
Rising yields indicate profit-taking and repositioning, rather than weak demand.
What This Means for Investors
• Investors are prioritizing capital preservation and predictable income
• Higher yields make T-Bills and OMO instruments very attractive
• Rising secondary market yields suggest opportunities for yield hunters
• Strong demand reinforces the government’s ability to fund borrowing needs smoothly
✅ Bottom Line
The first T-Bills and OMO auctions of 2026 confirm that fixed-income instruments remain in high demand, even as yields climb. With investors pouring trillions into government securities, money market assets are clearly one of the strongest plays early in 2026.
Nigeria’s fixed-income market opened 2026 on a very strong note, as investors showed massive appetite for government securities at the Central Bank of Nigeria’s (CBN) first Treasury Bills (T-Bills) auction of the year.
Despite higher interest rates across all tenors, demand remained resilient—highlighting investors’ preference for safe, high-yield instruments amid ongoing macroeconomic uncertainties.
Auction at a Glance
At the primary market auction held last week:
• Amount offered: ₦1.15 trillion
• Total subscriptions: ₦1.54 trillion
• Amount allotted: ₦1.15 trillion (full allotment)
This resulted in:
• Subscription-to-offer ratio: 1.34x
• ⚖️ Bid-to-cover ratio: 1.00x
The figures slightly exceeded the ₦1.51 trillion recorded at the previous auction, confirming sustained investor demand for T-Bills.
Higher Stop Rates Across All Tenors
Interest rates moved upward at the auction, reflecting tighter monetary conditions:
• ⏱ 91-day T-Bill: 15.80% (from 15.50%)
• ⏳ 182-day T-Bill: 16.50% (from 15.95%)
• 364-day T-Bill: 18.47% (from 17.51%)
The longer-dated 364-day instrument continued to attract strong interest due to its relatively higher yield.
OMO Auction Also Records Heavy Demand
Investor appetite was even stronger at the first Open Market Operations (OMO) auction of 2026:
• Offer size: ₦600 billion
• Total subscriptions: ₦2.73 trillion
• Subscription-to-offer ratio: 4.55x
• ✅ Total allotment: ₦2.71 trillion
Most of the demand was concentrated in the:
• 210-day OMO bill, which alone attracted ₦2.45 trillion in bids.
Stop rates settled at:
• ⏱ 161-day tenor: 19.34%
• 210-day tenor: 19.40%
Secondary Market Turns Bearish
Despite strong demand at auctions, sentiment weakened in the secondary market:
Treasury Bills:
• Average yield rose by 30 basis points to 18.02%
• Sell-offs were strongest in mid- to long-dated bills, especially June–December 2026 maturities
Bonds:
• Average bond yields increased by 21 basis points to 16.76%
• Heaviest sell-offs occurred in mid-tenor bonds (2029–2033 maturities)
Rising yields indicate profit-taking and repositioning, rather than weak demand.
What This Means for Investors
• Investors are prioritizing capital preservation and predictable income
• Higher yields make T-Bills and OMO instruments very attractive
• Rising secondary market yields suggest opportunities for yield hunters
• Strong demand reinforces the government’s ability to fund borrowing needs smoothly
✅ Bottom Line
The first T-Bills and OMO auctions of 2026 confirm that fixed-income instruments remain in high demand, even as yields climb. With investors pouring trillions into government securities, money market assets are clearly one of the strongest plays early in 2026.