CBN allots N8.14tn in Q3 Treasury Bills, 40% above target as rates drop after MPR cut
The Central Bank of Nigeria allotted approximately N8.14 trillion across eight Nigerian Treasury Bill auctions between July and September 2026, exceeding the N5.8 trillion quarterly target by 40.34%. The overshoot was driven by strong demand for the 364‑day bill, which accounted for about 87% of total allotments. After peaking at 17.70% on July 8, the 364‑day stop rate fell to 15.89% by September 23, following a 350‑basis‑point MPR cut the previous day. Auction allotments ranged from N497.59 billion to N1.456 trillion, with the largest single‑auction overshoot on August 12 (N1.456 trillion against a N700 billion offer). The Debt Management Office’s Q3 programme had planned N900bn each for 91‑day and 182‑day bills and N4 trillion for 364‑day bills. The excess allotment implies a net new borrowing target of roughly N3.16 trillion after maturities. The pattern shows two phases: heavy overshooting in July–August, then a sharp normalization in late September as rates declined. The CBN used Treasury Bills to meet government financing needs while managing system liquidity.
With Treasury Bill yields falling, will you reallocate more of your fixed‑income portfolio to equities or other higher‑yielding assets, or keep funds in government securities for safety?