December 05, (THEWILL) — Nigeria’s Debt Management Office (DMO) raised a total of ₦709.62 billion at its latest Nigerian Treasury Bills (NT-Bills) auction, with investors showing overwhelming preference for the longest-tenor instrument amid rising yields.
The government had offered ₦700 billion across three maturities:
91-day
182-day,
364-day bills, but subscriptions skewed heavily toward the 364-day paper.
Shorter-term bills recorded weak demand: the 91-day attracted ₦44.17 billion in bids, with ₦42.80 billion allotted, while the 182-day attracted ₦33.38 billion in bids and an allotment of ₦30.36 billion.
In contrast, the 364-day bill drew ₦697.29 billion in bids against the ₦450 billion offered, accounting for nearly 90% of the total amount eventually raised.
The stop-rate for the tenor climbed to 17.50%, marking one of the highest yields seen in recent auctions and reflecting tightening monetary conditions and persistent inflation concerns.
Market analysts say the pattern signals a strong investor preference for locking in higher returns over a longer horizon, amid expectations that interest rates may remain elevated in the near term.
The muted interest in shorter tenors also suggests investors are prioritising yield over liquidity as they reposition in response to macroeconomic uncertainties.
The DMO’s successful fundraising underscores continued investor confidence in government securities, even as rising yields increase borrowing costs for the federal government.
Ogochukwu Onwaeze
