Nume Ekeghe
Traders’ urge for food remained sturdy on the Central Financial institution of Nigeria’s (CBN) first Treasury payments public sale of 2026, with subscriptions rising above N1.5 trillion regardless of increased cease charges throughout all tenors.
On the main market public sale held final week, the CBN provided a complete of N1.15 trillion throughout the 91-day, 182-day and 364-day tenors. Complete subscriptions got here in at N1.54 trillion, barely increased than the N1.51 trillion recorded on the earlier public sale, underscoring sustained demand for presidency securities. The CBN finally allotted the complete N1.15 trillion on supply, leading to a bid-to-cover ratio of 1.00x and a subscription-to-offer ratio of 1.34x.
Cease charges edged increased on the public sale, with the 91-day paper clearing at 15.80 per cent, the 182-day tenor at 16.50 per cent and the 364-day instrument at 18.47 per cent, in contrast with 15.50 per cent, 15.95 per cent and 17.51 per cent respectively on the earlier public sale.
Meristem Securities in its breakdown of exercise stated: “Within the main market, the CBN held its first Treasury payments (T-bills) public sale for the yr 2026 through the week, providing a complete of NGN1.15bn throughout all tenors. Investor urge for food was strong with whole subscriptions reaching NGN1.54trn vs. N1.51trn on the final public sale. Complete allotment stood at N1.15trn, translating to a bid-to-cover ratio of 1.00x and a subscription-to-offer ratio of 1.34x. Cease charges inched increased to fifteen.80% for the 91-day tenor, 16.50 per cent for the 182-day tenor, and 18.47 per cent for the 364-day tenor vs. 15.50 per cent, 15.95, and 17.51 per cent beforehand.
“Equally, investor demand remained agency on the first Open Market Operations (OMO) public sale of the yr, the place whole subscriptions rose to N2.73 trillion in opposition to a suggestion dimension of N600 billion. This translated to a subscription-to-offer ratio of 4.55x, reflecting sturdy demand, notably for the 210-day instrument which attracted bids of N2.45 trillion. Complete allotment stood at N2.71 trillion, with a bid-to-cover ratio of 1.01x, whereas cease charges settled at 19.34 per cent for the 161-day tenor and 19.40 per cent for the 210-day paper.”
It added, “Within the secondary Treasury payments market, sentiment turned bearish as common yields rose by 30 foundation factors to 18.02 per cent from 17.72 per cent within the earlier week. Promote-offs had been concentrated in mid- to long-dated maturities, with notable yield will increase recorded on the 18 June 2026, +76bps, 3 December 2026, +128bps and 10 December 2026, +102bps payments, which outweighed selective shopping for curiosity noticed through the week.
“The bearish tone additionally prolonged to the secondary bond market, the place common yields climbed by 21 foundation factors to 16.76 per cent. Promote-offs had been broad-based throughout the curve however had been extra pronounced on the mid phase, as mirrored in increased yields on the April 2029, +53bps, August 2030 +97bps, February 2031, +38bps, Might 2033, +50bps and June 2033, +42bps bonds.”
