The Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) have drastically reduced stop rates across all Treasury Bill (NTB) tenors following the CBN's recent 350 basis points cut in the Monetary Policy Rate to 23.00%. This change was evident at the primary market auction held on September 23, 2026.
During the auction, the DMO allotted N497.59 billion against a total offer of N600 billion, despite attracting a staggering N4.23 trillion in subscriptions. The 364-day bill saw the most significant interest, accounting for approximately 97% of total demand, with its stop rate falling to 15.89%.
All three Treasury Bills experienced notable declines in stop rates, with the 91-day bill seeing the largest drop of 80 basis points to 15.50%. The 182-day and 364-day bills also fell by 70 and 73 basis points, respectively, signaling a rapid repricing of government securities.
The auction results indicate a strong investor appetite for the one-year bill, which received 10.24 times the amount offered. This trend reflects a broader shift in the fixed-income market as investors adjust to the CBN's easing monetary policy.
As borrowing costs decrease, the DMO's decision to allot N447.07 billion for the 364-day tenor suggests a transition toward lower interest rates. This shift marks a significant change from the high-yield environment seen in previous months, highlighting the evolving landscape of government securities.