DMO Limits Treasury Bill Allotments Amid Yield Decline

On October 29, the Debt Management Office (DMO) of Nigeria rejected approximately ₦1.84 trillion in investor subscriptions during a Treasury Bills auction, allotting only ₦71.16 billion. The one-year stop rate decreased to 15.80 percent, reflecting a decline in Treasury Bills yields from previous months.

Investors submitted ₦1.908 trillion in bids against an advertised offer of ₦800 billion, resulting in a subscription coverage of 2.38 times the amount offered. The DMO accepted only about 3.7 percent of total subscriptions, indicating a strategy to limit borrowing rather than meet higher yield expectations.

In the previous auction on October 14, the DMO had rejected around 74 percent of subscriptions. The 364-day instrument saw ₦1.84 trillion in subscriptions but only ₦38.38 billion was allotted.

The auction also revealed lower stop rates across all tenors, with the 91-day rate at 15.40 percent and the 182-day rate at 15.79 percent.