Nigeria’s latest Treasury Bills auction recorded strong investor demand, oversubscribed by ₦100.91 billion as yields continued to climb across all maturities.
Data from the Debt Management Office (DMO) shows that total bids hit ₦750.91 billion against the ₦650 billion offered. However, the government allotted only ₦391.58 billion, reflecting a cautious borrowing stance.
Rising Yields Fuel Demand
Stop rates rose across tenors:
91-day: 15.30%
182-day: 15.50%
364-day: 16.14% (true yield ~19.25%)
The 364-day bill attracted the bulk of bids ₦674.25 billion with ₦316.56 billion allotted, showing investors’ preference for higher long-term yields.
Investor Appetite Remains Strong
Analysts say the oversubscription highlights investors’ shift toward risk-free assets amid tight liquidity and high inflation. The trend aligns with the Central Bank of Nigeria’s ongoing monetary tightening to stabilize the naira and curb inflation.
In summary:
Investors are piling into Nigeria’s Treasury Bills, chasing attractive yields as rates rise across the board. The government, however, remains cautious, allotting less than half of total bids to manage borrowing costs.
