CBN offers N700bn Treasury Bills in first August auction

The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), has offered N700 billion worth of Nigerian Treasury Bills (NTBs) in its first primary market auction for August 2026, maintaining its focus on longer-dated securities amid sustained investor demand for one-year government paper.

According to the invitation to tender issued by the apex bank, the auction will be held on August 6, 2026, while bids will be submitted electronically through the CBN’s S4 Web Interface between 8:00 a.m. and 11:00 a.m. on August 5.

The offer comprises N100 billion in 91-day Treasury Bills, N100 billion in 182-day bills and N500 billion in 364-day bills, bringing the total offer size to N700 billion.

The CBN retained the same issuance structure adopted in recent Treasury Bills auctions, with the one-year instrument accounting for more than 70 per cent of the total offer as authorities continue to respond to strong institutional demand for longer-tenor securities.

The auction will be conducted using the Dutch auction system, under which investors quote both the amount they wish to purchase and the yield they are prepared to accept.

Bids will be ranked from the lowest yield upwards until the total amount on offer is exhausted, meaning investors quoting lower yields stand a stronger chance of securing full allotments, while higher-yield bids may be reduced or rejected.

All bids must be submitted electronically in multiples of N1,000, subject to a minimum subscription of N50.001 million.

The apex bank said authorised money market dealers may submit multiple bids either for their own accounts or on behalf of institutional and retail investors.

Auction results are expected to be announced on August 5, while allotment letters will be issued the following day. Successful bidders are required to settle payments with the CBN by 11:00 a.m. on August 6.

The latest offer follows robust activity in the domestic fixed-income market. Data from the CBN’s Fixed Income Dashboard showed that securities worth N1.24 trillion changed hands during the final week of July.

Open Market Operation (OMO) Bills accounted for N672.48 billion, representing more than 54 per cent of the total traded value, while Treasury Bills recorded transactions worth N6.98 trillion across 3,700 trades. Federal Government bonds generated N5.87 trillion from 3,343 trades, while Sukuk instruments recorded N69.11 billion in 23 trades.

The auction also comes after the CBN intensified liquidity management in July, mopping up N7.18 trillion through Open Market Operations as part of its monetary tightening strategy.

At the July 29 Treasury Bills auction, the apex bank allotted about N1.25 trillion against an initial offer of N700 billion, following exceptionally strong demand for the 364-day instrument.

Market participants will closely monitor the August auction to determine whether stop rates on one-year Treasury Bills continue their recent downward trend amid sustained investor demand and the CBN’s ongoing liquidity management operations.