The Debt Management Office (DMO), by means of the Central Bank of Nigeria (CBN), rejected N1.84 trillion in investor subscriptions on the October 28, 2026 Nigerian Treasury Bills public sale, allotting simply N71.16 billion because the one-year cease price declined to fifteen.80%.
According to the public sale outcomes analysed by Nairametrics, traders submitted N1.908 trillion in bids in opposition to an marketed provide of N800 billion, representing a subscription protection of two.38 occasions.
The authorities allotted solely 8.89% of the marketed provide, leaving roughly 96.27% of complete subscriptions unfilled, with the most important rejected quantity concentrated within the 364-day instrument.
It is the second public sale in a row during which the DMO has left most bids unallotted. At the October 14 auction, it didn’t allot about 74% of bids and raised the one-year price 5 foundation factors to fifteen.90%.
One-Year Bills dominate rejected bids
The 364-day Treasury Bill attracted N1.84 trillion in subscriptions in opposition to an marketed provide of N600 billion, reflecting demand of roughly 3.06 occasions the quantity provided.
However, the DMO allotted solely N38.38 billion, representing about 2.09% of subscriptions for the longest tenor.
- Investors submitted bids starting from 15.00% to 18.24% for the 364-day instrument, however the cease price settled at 15.80%, or 244 foundation factors under the best bid.
- The 91-day invoice attracted N51.56 billion in opposition to a N100 billion provide, with N22.33 billion allotted at a cease price of 15.40%.
- The 182-day invoice recorded N20.27 billion in subscriptions in opposition to N100 billion provided, whereas N10.45 billion was allotted at 15.79%.
- Approximately N1.798 trillion of the rejected subscriptions got here from the 364-day invoice, in contrast with N29.22 billion and N9.82 billion for the 91-day and 182-day devices, respectively.
The one-year instrument subsequently accounted for almost all of the N1.837 trillion in unallotted subscriptions, highlighting the focus of investor demand.
The stop-rate curve was additionally comparatively flat, with just one foundation level separating the 182-day and 364-day devices and a 40-basis-point unfold between the shortest and longest tenors.
Treasury Bill Rates proceed declining
The 364-day cease price declined by 10 foundation factors to fifteen.80% from 15.90% on the October 14 public sale, reversing the five-basis-point improve recorded within the earlier public sale.
The newest end result additionally contrasts with earlier auctions when the DMO allotted considerably bigger quantities on sturdy investor demand.
- At the October 7 auction, the DMO allotted N968.47 billion in opposition to an marketed provide of N900 billion, with the 364-day cease price settling at 15.85%.
- In August, the 364-day cease price reached 17.59% regardless of N4.4 trillion in bids in opposition to a N700 billion provide, putting the most recent price roughly 179 foundation factors lower.
- By September 9, the one-year stop rate had declined to 16.62%, whereas OMO auction rates also fell following the Monetary Policy Committee’s September price choice.
- The October 14 public sale noticed the 364-day cease price rise to fifteen.90%, whereas OMO cease rates elevated on the October 22 public sale.
Wednesday’s public sale marked a departure from the third-quarter sample, when the CBN exceeded marketed Treasury Bills provides in most public sale classes. By accepting considerably lower than the marketed quantity, the authorities maintained a lower cease price whereas leaving most subscriptions unallotted.
Banking liquidity reaches N8.59 trillion
Banking-system liquidity elevated to N8.59 trillion earlier than Wednesday’s public sale, in contrast with N6.94 trillion on the shut of the earlier week on October 23.
The improve was supported largely by N2.13 trillion in OMO maturities, offering further funds that supported demand for presidency securities.
- At the October 22 OMO public sale, the CBN offered N2.63 trillion throughout the 138-day and 180-day tenors in opposition to a suggestion of N2 trillion.
- The OMO devices cleared at cease rates of 17.63% and 17.14%, respectively, reflecting greater rates than these recorded at Wednesday’s Treasury Bills public sale.
- The common secondary-market Treasury Bills yield declined to 17.47% on October 27 from 18.21% on October 14, in response to the equipped market figures.
- The six-month and one-month benchmark yields declined to 16.63% and 16.68%, respectively, whereas the 12-month benchmark yield elevated to 18.61%.
The mixture of elevated system liquidity and lower secondary-market yields helped maintain sturdy demand on the major public sale. It additionally gave the DMO room to reject bids carrying greater yield expectations whereas limiting the quantity borrowed on the public sale.
Investors face tight Bill Allotments
The October 28 public sale resulted in lower cease rates throughout all three Treasury Bills tenors, with the 91-day price declining to fifteen.40%, the 182-day price to fifteen.79% and the 364-day price to fifteen.80%.
The decline within the 91-day cease price marked its first change since September 23, whereas the one-year price fell by 10 foundation factors from the earlier public sale.
- Investors looking for the 364-day instrument confronted significantly tight allotments, with solely about 2% of complete subscriptions accepted.
- The authorities cleared the one-year instrument at 15.80% regardless of receiving bids as excessive as 18.24%, limiting the accepted borrowing value.
- The N71.16 billion allotment was N728.84 billion under the marketed N800 billion provide, leaving a lot of the deliberate issuance unraised.
- Unallotted funds might stay obtainable for funding in secondary-market Treasury Bills or OMO devices, relying on investor preferences and subsequent market circumstances.
The public sale demonstrates the DMO’s willingness to restrict allotments fairly than settle for greater borrowing rates. However, future auctions will present whether or not the authorities preserve this method or regulate cease rates in response to investor demand and developments within the OMO market.
