The Central Bank of Nigeria hiked the stop rate on its 364-day Treasury Bill to 17.59% at the August 12 auction, surprising the market despite overwhelming investor demand. Investors submitted bids totaling N4.4 trillion against a N700 billion offer, yet the apex bank raised the one-year rate by 24 basis points from 17.35%. This move, which saw N1.26 trillion allotted for the one-year tenor, suggests the CBN is utilizing auctions to mop up excess system liquidity rather than signaling a shift toward rate easing. Short-term rates for the 91-day and 182-day bills remained unchanged at 16.30% and 16.50% respectively. The outcome challenges expectations for immediate yield compression ahead of the September Monetary Policy Committee meeting.