The Central Bank of Nigeria (CBN) is anticipated to conduct right this moment its second Treasury Payments (T-bills) public sale for the month of January 2026, valued at N1.15 trillion, amid elevated system liquidity and combined rate of interest expectations.
The apex {bank} will open a complete supply measurement of N1.15 trillion throughout the three normal maturities, 91 days, 182 days and 364 days, persevering with its technique of aggressive market funding by means of short-term home devices.
The public sale comes at a time when traders stay delicate to inflation dynamics, financial coverage indicators and liquidity administration operations by the CBN.
Analysts be aware that the end result of the public sale will present contemporary steering on the path of short-term charges, significantly because the market navigates the interplay between disinflation considerations and sustained authorities borrowing wants.
Particulars from the CBN’s supply round present that N150 billion has been earmarked for the 91-day payments, whereas N200 billion shall be provided on the 182-day tenor. The biggest tranche, N800 billion, shall be allotted to the 364-day payments, reflecting persistent investor urge for food for longer-dated securities that supply comparatively larger yields.
Market operators say the heavy weighting towards one-year payments underscores each the federal government’s funding technique and traders’ choice for locking in returns amid uncertainty over the longer term path of rates of interest. The long-dated section has constantly attracted stronger demand at current auctions.
This construction additionally mirrors current public sale patterns, the place the CBN has relied closely on longer tenors to mop up liquidity whereas providing yields that stay engaging in actual and nominal phrases, particularly for institutional traders.
Spot charges are extensively anticipated to edge larger once more, extending the pattern seen within the fourth quarter of 2025, when yields rose regardless of indicators of easing inflation. Analysts attribute this to considerations round inflation reversals and the CBN’s continued choice for tighter financial circumstances.
In December, the cease price on 91-day payments rose to fifteen.80% from 15.50%, whereas the 182-day payments climbed to 16.50% from 15.95%. One-year payments have been bought at 18.47%, up from 17.51%, reinforcing expectations of agency yields throughout the curve.
The CBN had additionally stepped-up charges at earlier auctions whilst headline inflation softened in November, a transfer that signaled its cautious stance on inflation sustainability and trade price stability.
Buying and selling within the secondary Treasury payments market has continued to swing from calm to bearish, reflecting a cautious undertone amid mild exercise, regardless of ample liquidity within the banking system.
Most maturities closed flat as traders adopted a wait-and-see strategy forward of the first public sale and a current Open Market Operations (OMO) sale.
Notably, solely the 09-Apr-26 and 07-Jan-27 papers recorded yield actions, rising by 58 foundation factors and 12 foundation factors, respectively. Different tenors have been largely unchanged, indicating subdued demand and selective positioning.
Earlier, the CBN allotted N2.64 trillion throughout 203-day and 245-day OMO papers at cease charges of 19.38% and 19.39%. Following this, the common Treasury invoice yield edged up by 4 foundation factors to shut at 18.14%, reflecting damaging sentiment pushed by selloffs within the secondary market.
CBN raised a complete of N1.144 trillion at its first NTB main market public sale of 2026, at larger cease charges throughout all maturities amid sustained investor demand.
On the January 7 public sale, DMO raised N108.17 billion for the 91-day, N48.23 billion for the 182-day, and N987.78 billion for the 364-day maturities at larger charges, as traders repriced the risk-free belongings throughout all maturities, significantly on the lengthy finish of the curve.
In distinction, yields on T-bills later declined to a median of 18.10% for the 364-day Payments at the secondary market, as investor demand for naira-denominated authorities belongings strengthened forward of the public sale.
Buying and selling exercise remained largely subdued, with solely marginal yield changes throughout most maturities. Nevertheless, longer-dated payments due in January 2027 attracted stronger curiosity, pushing their yield right down to 17.51%.
