CBN Recieves N1.17trn in Bids for Treasury Payments Public sale

The Central Financial institution of Nigeria (CBN)’s newest Treasury Payments public sale held on Could 21, 2025, drew whole bids value N1.17tn, highlighting the continued energy of investor urge for food for presidency securities amid excessive inflation and a steady rate of interest surroundings.

The public sale, which supplied a complete of N500bn throughout three tenors (91-day, 182-day, and 364-day payments), noticed the strongest curiosity concentrated within the one-year instrument.

In keeping with public sale outcomes, traders submitted bids of over N1.05tn for the 364-day invoice alone, representing almost 90 per cent of whole subscriptions and greater than thrice the N350bn supplied for that tenor.

In response to the overwhelming demand, the CBN elevated the allotment for the 364-day paper to N503bn, highlighting each its liquidity administration technique and the attraction of long-term yields within the present macroeconomic local weather.

The 91-day invoice attracted N72.56bn in subscriptions towards a N50bn provide, with N71.67bn ultimately allotted, whereas the 182-day tenor, which had a N100bn provide, obtained a decrease bid whole of N46.84bn and noticed an allotment of N41.13bn.

Whereas investor curiosity was evident throughout the board, the shorter tenors remained secondary to the one-year instrument, a development seemingly attributable to traders’ desire to lock in comparatively excessive yields amid expectations that charges could soften later within the yr.

Though the general yield surroundings was largely steady, the CBN adjusted the cease price on the 364-day invoice barely, decreasing it by seven foundation factors to 19.56 per cent from 19.63 per cent.

The cease charges for the 91-day and 182-day payments have been held fixed at 18.00 and 20.00 per cent, respectively.

Regardless of the speed lower, the true yield on the one-year invoice remained enticing at 24.31 per cent, in comparison with 20.40 per cent for the 182-day and 18.86 per cent for the 91-day invoice.

The public sale end result got here simply days after the Financial Coverage Committee of the Central Financial institution voted to carry the Financial Coverage Price at 27.50 per cent for a second consecutive assembly in 2025.

The choice marked a pause within the CBN’s tightening stance after six price hikes in 2024, a transfer aimed toward curbing inflation and stabilising the naira. The speed maintain seems to have boosted market confidence and created a extra predictable surroundings for fixed-income traders.

The robust response to the public sale seemingly displays a mix of extra liquidity within the banking system, restricted various funding choices, and investor positioning in anticipation of potential financial easing later within the yr.

With inflation nonetheless above 23 per cent, the Treasury Payments market stays one of many few devices providing constructive actual returns for traders looking for security and yield. Regardless of the marginal drop within the 364-day cease price, the continued oversubscription means that demand for presidency debt stays resilient.

The NTB market is anticipated to remain energetic because the Federal Authorities more and more leans on home borrowing to fund its finances and the CBN maintains a measured strategy to yield administration.