The Central Bank of Nigeria (CBN) has raised the stop rate on its benchmark 364-day Treasury Bill to 17.59%, despite overwhelming investor demand of N4.4 trillion against an advertised offer of N700 billion.

The development followed the Treasury Bills auction held on Wednesday, August 12, 2026, with investors submitting N4.19 trillion for the 364-day instrument alone—more than eight times the N500 billion offered.

The CBN subsequently allotted N1.26 trillion on the one-year bill, exceeding the advertised amount by N760 billion, while increasing the stop rate by 24 basis points from 17.35% to 17.59%.

The shorter-tenor instruments recorded more moderate demand. The 182-day bill attracted N63.97 billion against N100 billion offered, with N47.48 billion allotted at a 16.50% stop rate. The 91-day bill received N162.21 billion in subscriptions against N100 billion offered and cleared at 16.30%.

The latest move reverses the easing trend seen at the July 29 auction, when the CBN cut the one-year stop rate by 31 basis points despite subscriptions reaching nearly seven times the amount offered.

The auction is part of the CBN’s third-quarter 2026 Treasury Bills issuance programme, which targets N5.8 trillion in gross issuance between July and September.

Analysts say the latest rate increase indicates that the apex bank remains willing to maintain elevated yields on longer-tenor government securities, even amid strong demand and increased liquidity in the banking system.

The development could also complicate market expectations of an imminent easing cycle, as investors had increasingly anticipated lower yields ahead of the next Monetary Policy Committee meeting.

Meanwhile, analysts expect the September MPC meeting could provide an opportunity for the first CBN rate cut, potentially making current Treasury Bill yields above 17% particularly attractive to fixed-income investors.