Treasury Bills Auction Attracts N4.28 Trillion Subscriptions

Nigeria’s Treasury bills auction recorded strong investor participation, with total subscriptions reaching N4.28 trillion, far exceeding the N1.15 trillion offered by the monetary authorities. Auction data released by the Central Bank showed that demand was overwhelmingly concentrated on the 364-day instrument, reflecting investors’ preference for locking in yields for longer durations.

Despite the heavy demand, the total allotment stood at N1.91 trillion, indicating selective acceptance as part of liquidity and yield management measures. The 364-day bill alone attracted N4.07 trillion in subscriptions against an offer of N800 billion, with N1.71 trillion eventually allotted at a stop rate of 15.90 percent.

Shorter tenors recorded weaker demand. The 91-day bill received N112.01 billion in subscriptions compared with N150 billion offered, while the 182-day paper drew N93.75 billion against a N200 billion offer. Stop rates were fixed at 15.80 percent for the 91-day instrument and 16.65 percent for the 182-day bill.

Market analysts interpreted the pattern as evidence of strong system liquidity and a desire among investors to secure longer-term sovereign yields amid expectations that interest rates could ease later in the year. The yield configuration, with the one-year paper clearing below the six-month rate, suggests investors are prioritising certainty of return over short-term yield advantages.

The results also signal that monetary authorities remain cautious about accepting excess liquidity into the system. Observers expect continued strong demand for government securities in the near term, particularly if inflation expectations moderate and financial institutions continue to seek safe fixed-income instruments.