{"id":8443,"date":"2026-11-04T06:15:56","date_gmt":"2026-11-04T06:15:56","guid":{"rendered":"https:\/\/globalnigerianews.com\/index.php\/2026\/11\/04\/nigerias-securities-auctions-fall-55-86-to-n9-501-trillion-in-october\/"},"modified":"2026-11-04T06:15:56","modified_gmt":"2026-11-04T06:15:56","slug":"nigerias-securities-auctions-fall-55-86-to-n9-501-trillion-in-october","status":"publish","type":"post","link":"https:\/\/globalnigerianews.com\/index.php\/2026\/11\/04\/nigerias-securities-auctions-fall-55-86-to-n9-501-trillion-in-october\/","title":{"rendered":"Nigeria&#8217;s securities auctions fall 55.86% to N9.501 trillion in October"},"content":{"rendered":"<p>Nigeria\u2019s government securities auction allotments declined by 55.86% to N9.501 trillion in October 2026 from N21.527 trillion in September, as demand ratios weakened and monetary authorities left substantial investor bids unallotted.<\/p>\n<p>According to the <a href=\"https:\/\/cdn.nairametrics.com\/wp-content\/uploads\/2026\/11\/FMDA_Research_Monthly_report_October_2026.pdf\">Financial Markets Dealers Association\u2019s (FMDA) October 2026 market report,<\/a> the combined figure covers Nigerian Treasury Bills (NTBs), Open Market Operations (OMO) bills and Federal Government of Nigeria (FGN) bonds.<\/p>\n<p>The N12.026 trillion decline was driven mainly by lower OMO issuance, while FGN bonds were the only instrument to record an increase in allotments during the month.<\/p>\n<h4><strong>OMO issuance drops 64.69%:<\/strong><\/h4>\n<p>According to FMDA, OMO issuance declined by 64.69% to N6.182 trillion in October from N17.510 trillion in September, accounting for most of the reduction in total auction allotments.<\/p>\n<ul>\n<li>Treasury Bills allotments also fell by 45.86% to N1.309 trillion from N2.418 trillion, while FGN bond issuance increased by 25.70% to N2.010 trillion from N1.599 trillion.<\/li>\n<li>Bid-to-cover ratios declined to 2.19 times for NTBs from 5.11 times, while OMO ratios fell to 1.70 times from 3.69 times.<\/li>\n<li>The FGN bond bid-to-cover ratio moderated to 1.00 times from 1.49 times, indicating that subscriptions were approximately equal to the amount offered.<\/li>\n<li>At the October 28 NTB auction, the <a href=\"https:\/\/nairametrics.com\/2026\/10\/29\/dmo-rejects-n1-84-trillion-bids-pushes-t-bill-rates-lower\/\">Debt Management Office (DMO) rejected approximately N1.84 trillion in bids and allotted only N71.16 billion<\/a> against N1.908 trillion in subscriptions.<\/li>\n<li><a href=\"https:\/\/nairametrics.com\/2026\/10\/29\/dmo-rejects-n1-84-trillion-bids-pushes-t-bill-rates-lower\/\">The October 28 auction<\/a> attracted subscriptions equivalent to 2.38 times the N800 billion offer, highlighting the difference between investor demand and actual allotments.<\/li>\n<li><a href=\"https:\/\/nairametrics.com\/2026\/10\/16\/dmo-rejects-74-of-ntb-bids-raises-one-year-rate-to-15-90-for-first-time-since-august\/\">At the October 14 auction,<\/a> approximately 74% of bids went unallotted, while the one-year stop rate increased by five basis points to 15.90%.<\/li>\n<\/ul>\n<p>Secondary-market turnover across the three instruments also declined by 37.19% to N25.754 trillion from N41.002 trillion, with OMO accounting for N16.755 trillion.<\/p>\n<h4><strong>Nigerian Bond yields defy global trend:<\/strong><\/h4>\n<p>Nigeria\u2019s 10-year government bond yield increased by 40 basis points to 16.63% in October, contrasting sharply with declines across several international markets.<\/p>\n<ul>\n<li>The FMDA attributed the domestic movement to softer auction demand rather than a monetary policy adjustment.<\/li>\n<li>The United States\u2019 10-year yield declined by 36 basis points to 4.93%, while Japan\u2019s fell by 30 basis points.<\/li>\n<li>South Africa\u2019s yield declined by 23 basis points, the United Kingdom\u2019s by 14 basis points and China\u2019s by six basis points.<\/li>\n<li>Kenya recorded a 13-basis-point increase to 12.53%, while Nigeria\u2019s spread over the US 10-year yield stood at approximately 11.70 percentage points.<\/li>\n<\/ul>\n<p>In Nigeria\u2019s secondary market, average Treasury Bills yields increased by 28 basis points to 18.02%, led by the nine-month instrument, which rose to 18.71%.<\/p>\n<p>Average FGN bond yields increased by 23 basis points to 16.18%, while average OMO yields declined to 18.88% from 19.81%.<\/p>\n<p>At the October 19 FGN bond auction, the DMO allotted approximately N1.2 trillion, compared with N748.64 billion in September. The stop rate on the 16.79% FGN September 2036 bond increased to 17.29% from 16.79%, indicating higher borrowing costs for that instrument.<\/p>\n<h4><strong>CBN OMO slowdown boosts liquidity:<\/strong><\/h4>\n<p>The reduction in October\u2019s OMO allotments came after substantial liquidity withdrawals in September <a href=\"https:\/\/nairametrics.com\/2026\/10\/22\/cbn-offers-n2-trillion-omo-bills-as-banks-hold-n6-trillion-at-deposit-window\/\">when the CBN sold approximately N17.51 trillion in OMO securities.<\/a><\/p>\n<p>Those September sales exceeded maturities of N10.89 trillion, resulting in a net withdrawal of approximately N6.62 trillion.<\/p>\n<ul>\n<li>In October, the <a href=\"https:\/\/nairametrics.com\/2026\/11\/03\/fmda-projects-n13-79-trillion-inflows-in-november-as-cbn-eases-omo-mop-up\/\">CBN allotted N6.182 trillion in OMO securities against N9.051 trillion in maturities,<\/a> leaving a net repayment difference of approximately N2.87 trillion, according to FMDA<\/li>\n<li>Banking-system liquidity increased by 56.75% to N7.373 trillion from its September level, according to the FMDA.<\/li>\n<li>The association reported that foreign portfolio investors held more than $20 billion in Nigerian OMO securities, citing its market sources.<\/li>\n<li>The CBN\u2019s September 29 auction had raised approximately N4.686 trillion against an offer of N2.5 trillion, illustrating the scale of earlier liquidity absorption.<\/li>\n<\/ul>\n<p>The moderation in October coincided with substantial unallotted subscriptions at the final OMO and Treasury Bills auctions.<\/p>\n<p>According to the FMDA, maintaining attractive returns for foreign investors holding OMO securities remains an important consideration in the CBN\u2019s interest-rate strategy.<\/p>\n<p>The shift in issuance volumes also highlights the relationship between maturing securities, fresh allotments and available banking-system liquidity.<\/p>\n<h4><strong>Naira softens despite $3 billion sales by CBN:<\/strong><\/h4>\n<p>The naira depreciated by 0.87% to N1,338.99 per dollar in the Nigerian Foreign Exchange Market during October, despite CBN dollar sales exceeding $3 billion, according to FMDA.<\/p>\n<ul>\n<li>The parallel-market premium narrowed to N40.20 from N64.24, while foreign exchange reserves increased to approximately $55 billion.<\/li>\n<li>Nigeria\u2019s Eurobond yield declined by 26 basis points to 7.32% as of October 29, while a $105.94 million Eurobond coupon payment falls due in November.<\/li>\n<li>The FMDA advised banks to increase portfolio duration selectively rather than aggressively pursue higher yields, noting that holders of existing securities faced modest mark-to-market losses.<\/li>\n<li>The Monetary Policy Rate remained unchanged at 23% after September\u2019s reduction, with another Monetary Policy Committee meeting scheduled for November.<\/li>\n<\/ul>\n<p>Investors will be monitoring the CBN\u2019s policy stance, exchange-rate developments and oil-price risks linked to the Middle East. The combination of lower securities allotments, rising domestic bond yields and substantial projected inflows makes subsequent auctions important indicators of Nigeria\u2019s fixed-income market direction.<\/p>\n<p>Source: <\/p>\n<div class=\"nSourse\">Nairametrics<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Nigeria\u2019s government securities auction allotments declined by 55.86% to N9.501 trillion in October 2026 from N21.527 trillion in September, as demand ratios weakened and monetary authorities left substantial investor bids&hellip; <\/p>\n","protected":false},"author":1,"featured_media":8444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-8443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/8443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=8443"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/8443\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media\/8444"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=8443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=8443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=8443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}