The Debt Management Office (DMO) concluded its December 3 NT-Bill auction, and investors made it clear that patience pays.
Altogether, they committed ₦709.62 billion, but the 364-day bill captured most of their attention.
Investors Flock To Longer-Term Bill
By contrast, the shorter 91-day and 182-day bills failed to excite demand, attracting only ₦44.17 billion and ₦33.38 billion in bids against offers of ₦100 billion and ₦150 billion.
Meanwhile, investors rushed to subscribe to the 364-day bill, sending bids soaring to ₦697.29 billion—well above the ₦450 billion on offer.
Consequently, the DMO allotted ₦636.46 billion, satisfying almost 90% of total investor demand.
Yields Climb As Appetite Grows
Furthermore, the 364-day bill’s stop rate climbed to 17.50%, up from 16.04% in the previous auction, reflecting investors’ growing appetite.
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CEO of Optimus by Afrinvest, Dr Ayodeji Ebo, calculated that the effective yield reached 21.21%, meaning investors could still earn nearly 19% after the 10% withholding tax.
Meanwhile, investors maintained steady interest in the 91-day and 182-day bills, which cleared at 15.30% and 15.50%, respectively.
Long-Term Returns Outshine Shorter Tenors
Overall, the auction highlighted a clear trend.
Investors increasingly prefer long-term government paper, as the 364-day bill offered oversubscription, generous allotments, and attractive risk-free returns.
Conversely, those prioritising liquidity turned to shorter tenors despite lower yields.
By the year’s end, the message stood out: locking in capital for a year in Nigeria’s Treasury market can pay off handsomely.
