Nigeria’s Debt Management Office (DMO) allotted N71.16 billion in Treasury bills from N1.91 trillion in subscriptions at the Oct. 28 sale, leaving about 96% of bids without allocation as rates declined. The Financial Markets Dealers Association (FMDA), citing Central Bank of Nigeria (CBN) data, reported the results.
The accepted stop rate for 91-day bills fell 10 basis points to 15.40%. The rate for 182-day bills slipped one basis point to 15.79%, while the 364-day rate declined 10 basis points to 15.80%.
Demand was concentrated in the longest maturity. The 364-day bills attracted N1.84 trillion in subscriptions, with N38.38 billion allotted. For 91-day bills, subscriptions totaled N51.56 billion and allotments came to N22.33 billion. The 182-day bills drew N20.27 billion, of which N10.45 billion was allotted.
FMDA put banking-system liquidity at N8.59 trillion before the sale, compared with N6.94 trillion at the close on Oct. 23. It linked much of the increase to N2.13 trillion in maturing open-market operations. Average secondary-market Treasury bill yields fell to 17.47% on Oct. 27 from 18.21% on Oct. 14, although the 12-month benchmark yield rose 26 basis points to 18.61%.
The association said most bids went unallotted for a second auction in a row. At the Oct. 14 sale, FMDA reported that about 74% of bids received no allocation and the one-year stop rate rose five basis points to 15.90%. It said elevated liquidity and falling secondary-market yields supported demand and gave the DMO room to limit allotments at lower rates.
The CBN’s tender notice set an initial N800 billion offer: N100 billion each for 91-day and 182-day bills and N600 billion for 364-day bills. It allowed the CBN to vary the offer. The notice scheduled allotment letters and payment for Oct. 29.
