Nigeria Treasury Auction Sees 300% Oversubscription as Naira Stabilizes

Demand for Nigerian Treasury Bills (NTB) exploded at the latest auction, recording a massive 300% increase in subscription volumes, driven by high liquidity and a search for yield.

The auction witnessed total bids reaching N4.59 trillion, dwarfing the N1.15 trillion offered by the Debt Management Office (DMO).

Liquidity and Yield Hunting

The oversubscription ratio underscores a disconnect between available paper and system liquidity. With inflation pressures persisting, investors are locking in available rates, anticipating that the central bank's Fed-like hawkish stance may maintain elevated yields in the near term.

FX Stability Improving Sentiment

Market sentiment appears to be bolstered by perceived stability in the foreign exchange market. Reports indicate that new Original Equipment Manufacturers (OEMs) are entering the market.

• Total Bids: N4.59 trillion
• Amount Offered: N1.15 trillion
• Subscription Rate: 300%
• Currency Focus: Naira