The Debt Management Office (DMO) raised a total of N1.144 trillion at its first Nigerian Treasury Bills (NTB) primary market auction of 2026, at higher stop rates across all maturities amid sustained investor demand.
At the January 7 auction, DMO raised N108.17 billion for the 91-day, N48.23 billion for the 182-day, and N987.78 billion for the 364-day maturities.
The auction results showed a clear upward repricing of the risk-free assets across all maturities, particularly at the long end of the curve as investors continued to favour government securities as a hedge against inflation and policy uncertainty.
The result showed that demand remained resilient, highlighting strong system liquidity and investors’ willingness to lock in elevated yields, despite higher rates.
Like in previous auctions, the one-year paper dominated the auction, accounting for the bulk of funds raised.
Details of the auction show that a total of N1.15 trillion was offered with approximately N1.14 trillion allotted.
For the 91-day bill, N150 billion was offered with Subscription: N112.26 billion; Allotment: N108.17 billion; and Stop rate: 15.80% (up 30bps)
For the 182-day bill N200.0 billion was offered with Subscription: N49.91 billion; Allotment: N48.23 billion; and Stop rate: 16.50% (up 55bps).
For the 364-day bill, N800.0 billion was offered; Subscription: N1.38 trillion; Allotment: N987.78 billion; and Stop rate: 18.47% (up 96bps)
The 364-day NTB attracted more investors with the DMO raising N987.78 billion from the tenor alone.
Investors made a total subscription of about N1.38 trillion against an offer size of N800 billion.
Meanwhile, the stop rate on the one-year bill rose to 18.47%, representing the largest increase across the curve.
Market participants attributed the strong appetite to investors’ preference for longer-dated instruments that offer better yield compensation and protection against reinvestment risk in a high-rate environment.
At the short end of the curve, the 91-day NTB attracted moderate interest, with the DMO raising N108.17 billion. The stop rate on the three-month paper increased to 15.80%, up from the previous auction, signaling a gradual repricing even for short-dated instruments.
The demand for the 182-day bill was comparatively weaker. The DMO raised N48.23 billion from the six-month tenor, with a stop rate of 16.50%.
While rates rose, subdued subscriptions suggest that investors are increasingly selective at the mid-point of the curve, favouring either liquidity at the short end or yield at the long end.
