The Central Bank of Nigeria (CBN) and Debt Management Office (DMO) have revealed that Wednesday’s treasury bills auction attracted N4.28 trillion in subscriptions, more than three times the N1.15 trillion offered. The outcome underscores robust system liquidity and strong investor demand for sovereign securities.
Auction results showed investors overwhelmingly favored the 364-day tenor, which accounted for about 95 percent of total bids. The one-year bill drew N4.07 trillion in subscriptions against an offer of N800 billion, with N1.71 trillion allotted at a stop rate of 15.90 percent. This reflects selective acceptance despite heavy demand, as authorities continue to manage yields.
Shorter-dated papers were undersubscribed. The 91-day bill recorded N112.01 billion in subscriptions compared with an offer of N150 billion, with N105.05 billion allotted at a stop rate of 15.80 percent. Similarly, the 182-day tenor attracted N93.75 billion against a N200 billion offer, with N93.41 billion allotted at a stop rate of 16.65 percent.
The yield configuration showed the 364-day paper clearing slightly above the 91-day rate but below the 182-day yield. This indicates investors were willing to accept slightly lower returns on longer maturities in exchange for reinvestment certainty.
Market participants said the strong demand for the one-year instrument reflects expectations that yields may moderate in the coming months, prompting investors to lock in current rates.
The DMO stated that the auction reflects confidence in Nigeria’s creditworthiness and macroeconomic direction. The selective allotment of N1.91 trillion, despite outsized demand, demonstrates disciplined debt management, ensuring borrowing aligns with funding needs and cost objectives rather than simply absorbing excess liquidity.
