DMO Raises N829bn From Treasury Bills Auction As Demand Hits N1.99trn

The Debt Management Office (DMO) on Wednesday raised a total of N829.33 billion at the Nigerian Treasury Bills (NTB) primary market auction, following robust investor demand of N1.99 trillion across the three maturities on offer.

The amount raised exceeded the N650 billion initially offered, underscoring sustained appetite for government securities amid stable yields and ample system liquidity. Details of the auction showed that the DMO offered N100 billion in the 91-day bill, N50 billion in the 182-day tenor and N500 billion in the 364-day instrument.

Total subscriptions stood at N68.63 billion for the 91-day bill, N81.04 billion for the 182-day bill and a significantly higher N1.84 trillion for the 364-day tenor, highlighting strong investor preference for longer-dated instruments.

The DMO allotted N67.45 billion for the 91-day bill, N78.59 billion for the 182-day tenor and N683.29 billion for the 364-day bill, bringing total allotments to N829.33 billion.

The auction recorded an overall bid-to-offer ratio of 3.1 times, while the bid-to-cover ratio settled at 2.4 times, reflecting healthy oversubscription despite unchanged stop rates.

Stop rates were maintained at 15.95 per cent for the 91-day bill, 16.14 per cent for the 182-day bill and 16.15 per cent for the 364-day instrument, the same levels as at the previous auction.

Analysis of the auction results showed that bids for the 91-day bill ranged from 15.00 per cent to 16.05 per cent, while bids for the 182-day tenor ranged from 15.00 per cent to 18.00 per cent. For the one-year bill, bids ranged from 15.19 per cent to 20.50 per cent, indicating some investors sought higher yields, although the DMO retained the prevailing stop rate.

Compared with secondary market yields at the close of trading on Tuesday, the stop rate on the 91-day bill was five basis points above the market yield of 15.90 per cent. The 182-day stop rate was 12 basis points below the secondary market yield of 16.26 per cent, while the 364-day stop rate was 31 basis points above the market yield of 15.84 per cent.

Analysts said the strong demand, particularly for the 364-day bill, reflected investors’ continued preference to lock in attractive yields amid expectations that monetary authorities may maintain a tight stance in the near term.

The auction outcome also suggests that liquidity conditions in the financial system remain supportive, enabling investors to absorb a volume larger than the offered amount without exerting upward pressure on rates.