WED JUNE 17 2026-theGBJournal| The Debt Management Office (DMO) raised N1.49 trillion at a Treasury bill auction on Wednesday, exceeding the N1 trillion initially offered, after robust investor demand prompted the sovereign debt manager to increase allotments despite having to pay higher borrowing costs.
The auction drew total subscriptions of N1.86 trillion, translating to a bid-to-offer ratio of 1.9 times, underscoring continued appetite for government securities among banks, pension funds and asset managers seeking attractive risk-adjusted returns.
The DMO’s final allotment resulted in a bid-to-cover ratio of 1.2 times.
Borrowing costs rose across all tenors, with the stop rate on the 91-day bill climbing 23 basis points to 16.28%, while the 182-day tenor increased 31 basis points to 16.50%.
The largest adjustment came on the 364-day paper, where the stop rate surged 99 basis points to 17.34%, reflecting investors’ demand for higher compensation amid lingering inflation risks and uncertainty over the outlook for monetary policy.
The sharp increase in yields, particularly at the long end, suggests investors continue to price in elevated inflationary pressures and expect interest rates to remain high.
The DMO’s decision to allot nearly 50% more than its initial offer highlights the government’s readiness to capitalize on strong demand to meet financing needs.
The auction outcome is expected to exert upward pressure on secondary-market Treasury bill yields, reinforcing the appeal of fixed-income assets as investors position for a prolonged period of elevated rates.
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