The Debt Management Office (DMO) rejected roughly 74% of N1.032 trillion complete subscriptions, accepting solely N269.06 billion – about 26.07% of the bids acquired on the October 14 auctions of Nigerian Treasury Bills (NTBs).
For the one-year invoice, DMO allotted N220 billion of the N982.21 billion subscribed, because the cease rate rose 5 foundation factors to 15.90% from 15.85%, its first improve since August.
This is in accordance to the Treasury invoice public sale outcomes launched by the Central Bank of Nigeria (CBN), which carried out the public sale on behalf of the Federal Government, and evaluation by the Financial Markets Dealers Association (FMDA).
The CBN supplied N450 billion throughout three tenors, in contrast with N900 billion on the October 7 public sale, whereas complete subscriptions reached N1.032 trillion, allotments stood at N269.06 billion, roughly 40% beneath the marketed supply.
DMO allots simply 22% of bids:
Demand on the public sale was concentrated within the 364-day Treasury invoice, which attracted 95.15% of complete subscriptions. Investors submitted N982.21 billion in bids for the one-year instrument towards an marketed supply of N350 billion.
However, the DMO allotted solely N220 billion, representing roughly 22.4% of subscriptions and 62.9% of the quantity supplied.
- The 364-day invoice attracted subscriptions equal to 2.81 instances its N350 billion supply, with the cease rate rising to 15.90%.
- The 182-day invoice acquired N30.10 billion in bids towards N50 billion supplied, with N29.54 billion allotted at an unchanged 15.80%.
- The 91-day invoice attracted N19.91 billion towards N50 billion supplied, with N19.52 billion allotted at an unchanged 15.50%.
- Total subscriptions had been 2.29 instances the N450 billion supply, in contrast with 1.97 instances on the October 7 public sale.
Approximately N763 billion in bids was not allotted, with practically all of the unallotted subscriptions concentrated within the one-year tenor.
Bids for the 364-day invoice ranged from 15.00% to 18.18%, inserting the accepted cease rate 228 foundation factors beneath the very best bid. FMDA interpreted the restricted allotment as an try to resist upward stress on borrowing charges, though the public sale outcomes didn’t clarify why particular person bids had been rejected.
Treasury Bill Rates reverse decline:
The five-basis-point improve within the one-year cease rate interrupted a downward pattern that had continued since August. Nairametrics previously reported that the 364-day rate reached 17.59% on August 12 earlier than declining via subsequent auctions.
The CBN allotted N8.14 trillion in Treasury payments throughout Q3 2026, exceeding its N5.80 trillion goal by 40.34%.
Although complete subscriptions declined by roughly 42% between the October 7 and October 14 auctions, demand remained concentrated within the longest tenor.
The newest outcomes additionally confirmed CBN-reported true yields of 16.14%, 17.16% and 18.91% for the 91-day, 182-day and 364-day payments, respectively. The improve within the one-year cease rate was modest, but it surely marked the first reversal of the latest decline in primary-market pricing.
DMO limits borrowing amid liquidity:
Banking system liquidity elevated to N6.30 trillion from N3.71 trillion within the week previous the public sale, supported by roughly N2.41 trillion in OMO maturities, in accordance to FMDA. Despite the development, yields in components of the secondary Treasury invoice market elevated.
FMDA reported that the typical secondary-market Treasury invoice yield rose 22 foundation factors to 17.86% on October 13, forward of the public sale.
- The 12-month secondary-market yield elevated 61 foundation factors to 18.38%, whereas the one-month yield rose 94 foundation factors to 17.75%.
- The three-month and six-month yields declined by 49 and 11 foundation factors, respectively.
- The N269.06 billion allotted exceeded the N80.84 billion in Treasury payments scheduled to mature, implying a internet improve of roughly N188.22 billion in excellent face worth.
The 364-day public sale cease rate of 15.90% exceeded the 15.75% secondary-market shut cited within the public sale desk, though the measures might use completely different pricing conventions.
Analysts at FMDA considered the smaller allotment as proof of the DMO’s effort to average borrowing with out accepting considerably increased charges.
The wide selection of submitted bids additionally signifies variations between the charges traders sought and the extent at which the federal government was ready to allot payments. The subsequent public sale will present whether or not the DMO maintains its restrained allotment method and whether or not the upward motion in one-year cease charges continues
