The Debt Management Office (DMO), through the Central Bank of Nigeria (CBN), rejected N1.84 trillion in investor subscriptions at the October 28, 2026 Nigerian Treasury Bills auction, allotting just N71.16 billion as the one-year stop rate declined to 15.80%.

According to the auction results analysed by Nairametrics, investors submitted N1.908 trillion in bids against an advertised offer of N800 billion, representing a subscription coverage of 2.38 times.

The authorities allotted only 8.89% of the advertised offer, leaving approximately 96.27% of total subscriptions unfilled, with the largest rejected amount concentrated in the 364-day instrument.

It is the second auction in a row in which the DMO has left most bids unallotted. At the October 14 auction, it did not allot about 74% of bids and raised the one-year rate five basis points to 15.90%.

One-Year Bills dominate rejected bids

The 364-day Treasury Bill attracted N1.84 trillion in subscriptions against an advertised offer of N600 billion, reflecting demand of approximately 3.06 times the amount offered.

However, the DMO allotted only N38.38 billion, representing about 2.09% of subscriptions for the longest tenor.

• Investors submitted bids ranging from 15.00% to 18.24% for the 364-day instrument, but the stop rate settled at 15.80%, or 244 basis points below the highest bid.
• The 91-day bill attracted N51.56 billion against a N100 billion offer, with N22.33 billion allotted at a stop rate of 15.40%.
• The 182-day bill recorded N20.27 billion in subscriptions against N100 billion offered, while N10.45 billion was allotted at 15.79%.
• Approximately N1.798 trillion of the rejected subscriptions came from the 364-day bill, compared with N29.22 billion and N9.82 billion for the 91-day and 182-day instruments, respectively.

The one-year instrument therefore accounted for nearly all the N1.837 trillion in unallotted subscriptions, highlighting the concentration of investor demand.

The stop-rate curve was also relatively flat, with only one basis point separating the 182-day and 364-day instruments and a 40-basis-point spread between the shortest and longest tenors.

Treasury Bill Rates continue declining

The 364-day stop rate declined by 10 basis points to 15.80% from 15.90% at the October 14 auction, reversing the five-basis-point increase recorded in the previous auction.

The latest result also contrasts with earlier auctions when the DMO allotted substantially larger amounts on strong investor demand.

• At the October 7 auction, the DMO allotted N968.47 billion against an advertised offer of N900 billion, with the 364-day stop rate settling at 15.85%.
• In August, the 364-day stop rate reached 17.59% despite N4.4 trillion in bids against a N700 billion offer, placing the latest rate approximately 179 basis points lower.
• By September 9, the one-year stop rate had declined to 16.62%, while OMO auction rates also fell following the Monetary Policy Committee’s September rate decision.
• The October 14 auction saw the 364-day stop rate rise to 15.90%, while OMO stop rates increased at the October 22 auction.

Wednesday’s auction marked a departure from the third-quarter pattern, when the CBN exceeded advertised Treasury Bills offers in most auction sessions. By accepting substantially less than the advertised amount, the authorities maintained a lower stop rate while leaving most subscriptions unallotted.

Banking liquidity reaches N8.59 trillion

Banking-system liquidity increased to N8.59 trillion before Wednesday’s auction, compared with N6.94 trillion at the close of the previous week on October 23.

The increase was supported largely by N2.13 trillion in OMO maturities, providing additional funds that supported demand for government securities.

• At the October 22 OMO auction, the CBN sold N2.63 trillion across the 138-day and 180-day tenors against an offer of N2 trillion.
• The OMO instruments cleared at stop rates of 17.63% and 17.14%, respectively, reflecting higher rates than those recorded at Wednesday’s Treasury Bills auction.
• The average secondary-market Treasury Bills yield declined to 17.47% on October 27 from 18.21% on October 14, according to the supplied market figures.
• The six-month and one-month benchmark yields declined to 16.63% and 16.68%, respectively, while the 12-month benchmark yield increased to 18.61%.

The combination of elevated system liquidity and lower secondary-market yields helped sustain strong demand at the primary auction. It also gave the DMO room to reject bids carrying higher yield expectations while limiting the amount borrowed at the auction.

Investors face tight Bill Allotments

The October 28 auction resulted in lower stop rates across all three Treasury Bills tenors, with the 91-day rate declining to 15.40%, the 182-day rate to 15.79% and the 364-day rate to 15.80%.

The decline in the 91-day stop rate marked its first change since September 23, while the one-year rate fell by 10 basis points from the previous auction.

• Investors seeking the 364-day instrument faced particularly tight allotments, with only about 2% of total subscriptions accepted.
• The government cleared the one-year instrument at 15.80% despite receiving bids as high as 18.24%, limiting the accepted borrowing cost.
• The N71.16 billion allotment was N728.84 billion below the advertised N800 billion offer, leaving most of the planned issuance unraised.
• Unallotted funds may remain available for investment in secondary-market Treasury Bills or OMO instruments, depending on investor preferences and subsequent market conditions.

The auction demonstrates the DMO’s willingness to limit allotments rather than accept higher borrowing rates. However, future auctions will show whether the authorities maintain this approach or adjust stop rates in response to investor demand and developments in the OMO market.