CBN hikes rates to 17.59% despite overwhelming N4.4 trillion bid against N700 billion offer
The Central Bank of Nigeria (CBN) raised the stop rate on its benchmark 364-day Treasury Bill to 17.59% at Wednesday’s auction, defying expectations that overwhelming demand would push borrowing costs lower. The post CBN hikes rates to 17.59% despite overwhelming N4.4 trillion bid against N700 billion offer appeared first on Nairametrics .
The Central Bank of Nigeria (CBN) raised the stop rate on its benchmark 364-day Treasury Bill to 17.59% at a recent auction, despite overwhelming demand that would typically result in lower borrowing costs. Investors submitted a combined N4.4 trillion in bids across the three-tenor offer, far exceeding the N700 billion advertised.
This marks a significant reversal from the previous auction, where the CBN eased the one-year stop rate by 31 basis points despite subscriptions reaching nearly seven times the offer size. The scale of oversubscription on the 364-day bill suggests that the CBN is not yet ready to lower borrowing costs, even with abundant liquidity in the banking system.
The auction is part of the CBN’s Q3 2026 NTB Issuance Programme targeting N5.8 trillion in gross issuance, aimed at financing the government’s fiscal deficit.
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