WED AUG 12 2026-theGBJournal| Nigeria’s Treasury-bill auction drew N4.41 trillion in bids today, more than six times the amount initially offered, underscoring strong investor appetite for short-term government debt even as the Debt Management Office (DMO) raised significantly more than its advertised N700 billion.
The DMO ultimately allotted N1.46 trillion, more than double the amount on offer, giving the auction a 3.0x bid-to-cover ratio.
The unusually large allocation suggests the government was willing to absorb substantial demand amid continued investor interest in naira-denominated fixed-income assets.
The strongest repricing came at the long end of the curve. The stop rate on the 364-day bill rose 24 basis points to 17.59%, from 17.35% at the previous auction, as investors submitted bids ranging from 16.50% to 20.27%.
Rates on the shorter tenors were left unchanged, with the 91-day bill clearing at 16.30% and the 182-day bill at 16.50%.
Bids for the 91-day paper ranged from 15.90% to 19.30%, while those for the 182-day tenor ranged between 15.89% and 19.00%.
The outcome points to a market still demanding relatively high yields to absorb longer-dated government paper, while the unchanged short-tenor rates suggest investors remain comfortable with current pricing at the front end.
Key takeaway: Demand was equivalent to 6.3 times the amount offered, but the DMO allotted more than twice its original offer, while pushing the one-year stop rate higher — a sign that investors remain hungry for Treasury bills but are seeking greater compensation for locking money up for longer.
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