DMO raises N968.47 billion as 364-day stop rate falls to 15.85% despite strong demand

The Debt Management Office allotted N968.47 billion in Nigerian Treasury Bills on 7 October 2026. The amount exceeded the N900 billion offered at the auction.

Total subscriptions reached approximately N1.77 trillion, about twice the sum on offer. Demand concentrated heavily on the longest tenor. For ongoing coverage of Nigerian fixed-income markets, see MarketPulse Africa.

Auction Results by Tenor

364-Day Bill

Investors submitted N1.683 trillion in bids for the N700 billion offered. The DMO allotted N885 billion. The stop rate fell four basis points to 15.85% from 15.89% at the previous auction.

This instrument accounted for roughly 95% of total subscriptions and more than 91% of the final allotment. The DMO sold N185 billion more than the initial offer size for the one-year paper.

91-Day and 182-Day Bills

The 91-day bill attracted N39.42 billion in bids against an offer of N100 billion. N38.55 billion was allotted at a stop rate of 15.50%, unchanged from the prior auction.

The 182-day bill drew N46.87 billion in bids against the same N100 billion offer. N44.92 billion was allotted at 15.80%, also unchanged.

Shorter tenors continued to attract limited interest relative to the one-year bill. Market participants have noted a sustained preference for locking in rates over a longer horizon.

Rate Trend and Recent History

The 364-day stop rate has declined 146 basis points across four consecutive auctions from 16.84% on 2 September. The latest level sits 185 basis points below the third-quarter peak of 17.70% recorded on 8 July.

The downward move in the one-year rate has occurred even as total demand remains strong. Investors have consistently channelled the bulk of their bids into the longest tenor at recent auctions. Related analysis of Nigerian debt-market trends is available on the MarketPulse Africa blog.

Market Context

The auction was conducted by the Central Bank of Nigeria on behalf of the Debt Management Office. Settlement was scheduled for the following day.

Strong demand for the 364-day bill has been a recurring feature of recent primary market activity. At the same time, secondary-market yields have shown periods of upward pressure, reflecting shifting liquidity conditions. Readers following fixed-income developments across African markets can find additional context at MarketPulse Africa.

Independent reporting on the 7 October results is available from Nairametrics and Business Post Nigeria.

Implications for Investors and Borrowing Costs

The continued decline in the 364-day stop rate reduces the government’s cost of short-term borrowing at the long end of the Treasury bill curve. For investors, the heavy oversubscription indicates ongoing appetite for sovereign paper even as rates ease.

The pattern of undersubscription in the shorter tenors suggests that many participants prefer to extend duration rather than remain in the most liquid, short-dated instruments. This preference has shaped allotment outcomes at several recent auctions.

Further background on the auction mechanics and recent rate path can be found in coverage by Radarr Africa.

Looking Ahead

The 7 October results reinforce the dominance of the one-year bill in primary market demand. Whether the stop rate continues to edge lower will depend on the balance between government funding needs, liquidity conditions and investor positioning in the weeks ahead.

Market participants will watch subsequent auctions for any shift in the concentration of bids and for further movement in stop rates across the three tenors.