The Debt Management Office (DMO) has raised N968.47 billion through Nigerian Treasury Bills (NTBs), exceeding its N900 billion offer by N68.47 billion as strong investor demand drove the yield on the 364-day instrument to a fresh low of 15.85%.
The development came amid sustained demand for longer-dated government securities and aggressive liquidity management by the Central Bank of Nigeria (CBN).
The October 7, 2026 NTB auction, conducted through the CBN, attracted total subscriptions of approximately N1.77 trillion across the three tenors, representing about twice the amount offered.
The 364-day bill dominated the auction, accounting for about 95.1 per cent of total subscriptions and 91.4 per cent of the amount ultimately allotted.
The DMO allotted N885 billion through the one-year instrument, exceeding its initial N700 billion offer by N185 billion, or 26.4 per cent.
Investors submitted N1.683 trillion for the 364-day bill, equivalent to about 2.4 times the amount offered, underscoring strong appetite for longer-tenor government securities despite the continued decline in yields.
The stop rate fell by four basis points to 15.85 per cent from 15.89 per cent at the previous auction.
The latest decline extends the downward trend in the one-year NTB rate, which has fallen by 146 basis points across four consecutive auctions from 16.84 per cent recorded on September 2.
It is also 185 basis points below the 17.70 per cent third-quarter peak recorded on July 8.
The latest auction therefore enabled the DMO to substantially increase the amount allotted on the one-year bill without having to offer investors a higher stop rate.
The strong demand for the 364-day instrument contrasted sharply with the weak appetite for shorter-dated securities.
The DMO offered N100 billion each in 91-day and 182-day bills, but neither tenor attracted subscriptions equivalent to half of the amount offered.
The 91-day bill received N39.42 billion in subscriptions, with N38.55 billion eventually allotted at an unchanged stop rate of 15.50 per cent.
Similarly, the 182-day instrument attracted N46.87 billion in subscriptions, while N44.92 billion was allotted at a stop rate of 15.80 per cent.
Combined subscriptions for the two shorter tenors stood at N86.29 billion, compared with N1.683 trillion submitted for the 364-day bill.
This means demand for the one-year instrument was approximately 19.5 times the combined subscriptions received for the 91-day and 182-day bills.
The yield curve was also compressed, with only 35 basis points separating the 91-day and 364-day stop rates. The one-year rate was just five basis points above the 182-day rate.
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The auction was conducted against the backdrop of significant liquidity management operations by the CBN.
A day before the NTB auction, the apex bank withdrew N3.31 trillion through an Open Market Operations (OMO) auction, while approximately N2.17 trillion in maturing OMO bills flowed back into the banking system.
The transactions resulted in a net liquidity withdrawal of about N1.14 trillion.
The move followed aggressive OMO activity in September, when the CBN sold approximately N17.51 trillion in OMO bills while about N10.89 trillion matured.
The September operations resulted in a net liquidity withdrawal of approximately N6.62 trillion across five auctions.
Meanwhile, the Financial Markets Dealers Association projects N13.25 trillion in financial-system liquidity inflows for October, representing a 14.82 per cent decline from the N15.56 trillion projected for September.
OMO maturities are expected to account for N9.05 trillion, representing about 68.3 per cent of projected October liquidity inflows.
The latest NTB auction highlights continued investor preference for longer-dated government securities even as yields trend lower, while the DMO’s ability to raise more than its advertised amount points to strong demand for government debt amid ongoing monetary and liquidity management by the CBN.
