DMO rejects 74% of Treasury Bill bids as 1-year rate rises slightly
On October 14, the Debt Management Office rejected approximately 74% of N1.032 trillion in Treasury Bill subscriptions, accepting only N269.06 billion (26.07%) at the auction conducted by the Central Bank of Nigeria. This came despite total subscriptions being 2.29 times the N450 billion offered across three tenors, with demand heavily concentrated in the one-year bill (95.15% of bids). The stop rate for the 364-day bill rose five basis points to 15.90%, ending a months-long decline that began after the CBN's September rate cut.
Banking system liquidity increased to N6.30 trillion prior to the auction, yet secondary market yields rose in some segments—the 12-month yield jumped 61 basis points to 18.38%—suggesting complex liquidity dynamics. For Nigerians, this signals the government's effort to control borrowing costs amid high demand, which may influence future interest rates on loans and savings products.
Will you see this as a sign to lock in fixed-income investments now, or wait for clearer rate direction?