DMO Rejects N763bn in Treasury Bill Bids Amid Rate Hike

The Debt Management Office (DMO) rejected N763bn worth of bids at Nigeria's latest Treasury bills auction, accepting only N269.06bn out of N1.032tn submitted by investors. This auction, conducted by the Central Bank of Nigeria (CBN) on behalf of the Federal Government on 14 October, marked the first increase in the one-year borrowing rate since August, with the 364-day T-bill stop rate rising to 15.90% from 15.85% at the previous auction on 7 October.

The government offered N450bn across various tenors, but total allotments were significantly below this amount. The 364-day instrument attracted the majority of demand, with N982.21bn in bids, yet only N220bn was allotted.

Investors submitted bids at rates between 15.00% and 18.18%, while the government settled at a stop rate of 15.90%. The auction results indicated a selective borrowing approach by the government, as demand for the 364-day bill fell by approximately 41.6% from the previous auction.