Treasury bills auction drew N4.28trn in bids –DMO

The Central Bank of Nigeria (CBN) and Debt Management Office (DMO) has revealed that said the country’s treasury bills auction on Wednesday attracted N4.28 trillion in total subscriptions, more than three times the N1.15 trillion offered, underscoring robust system liquidity and strong investor demand for sovereign securities.

Auction results released by the central bank showed investors overwhelmingly favored the 364-day tenor, which accounted for about 95 per cent of total bids.

The one-year bill drew N4.07 trillion in subscriptions against an offer of N800 billion. The DMO allotted N1.71 trillion at a stop rate of 15.90 per cent, reflecting selective acceptance despite heavy demand as authorities continue to manage yields.

Overall allotments across the three maturities totaled N1.91 trillion.

Shorter-dated papers were undersubscribed. The 91-day bill recorded N112.01 billion in subscriptions compared with an offer of N150 billion. The bank allotted N105.05 billion at a stop rate of 15.80 per cent.

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 per cent.

The yield configuration showed the 364-day paper clearing marginally above the 91-day rate but below the 182-day yield, suggesting 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 coming months, prompting investors to lock in current rates.

The auction outcome highlights ample liquidity conditions in the financial system and continued appetite for government securities, even as monetary authorities calibrate issuance and pricing to balance borrowing costs with inflation and liquidity management objectives.

In a statement seen by Daily Sun, the debt office was quoted, stating that this reflects confidence in Nigeria’s creditworthiness and macroeconomic direction.

It added that the selective allotment of N1.91 trillion despite outsized demand would be framed as disciplined debt management, ensuring borrowing remains aligned with funding needs and cost objectives rather than simply absorbing excess liquidity.