Nigeria’s authorities securities public sale allotments declined by 55.86% to N9.501 trillion in October 2026 from N21.527 trillion in September, as demand ratios weakened and financial authorities left substantial investor bids unallotted.
According to the Financial Markets Dealers Association’s (FMDA) October 2026 market report, the mixed determine covers Nigerian Treasury Bills (NTBs), Open Market Operations (OMO) payments and Federal Government of Nigeria (FGN) bonds.
The N12.026 trillion decline was pushed primarily by decrease OMO issuance, whereas FGN bonds had been the one instrument to file a rise in allotments through the month.
OMO issuance drops 64.69%:
According to FMDA, OMO issuance declined by 64.69% to N6.182 trillion in October from N17.510 trillion in September, accounting for a lot of the discount in complete public sale allotments.
- Treasury Bills allotments additionally fell by 45.86% to N1.309 trillion from N2.418 trillion, whereas FGN bond issuance elevated by 25.70% to N2.010 trillion from N1.599 trillion.
- Bid-to-cover ratios declined to 2.19 instances for NTBs from 5.11 instances, whereas OMO ratios fell to 1.70 instances from 3.69 instances.
- The FGN bond bid-to-cover ratio moderated to 1.00 instances from 1.49 instances, indicating that subscriptions had been roughly equal to the quantity provided.
- At the October 28 NTB public sale, the Debt Management Office (DMO) rejected approximately N1.84 trillion in bids and allotted only N71.16 billion in opposition to N1.908 trillion in subscriptions.
- The October 28 auction attracted subscriptions equal to 2.38 instances the N800 billion provide, highlighting the distinction between investor demand and precise allotments.
- At the October 14 auction, roughly 74% of bids went unallotted, whereas the one-year cease charge elevated by 5 foundation factors to 15.90%.
Secondary-market turnover throughout the three devices additionally declined by 37.19% to N25.754 trillion from N41.002 trillion, with OMO accounting for N16.755 trillion.
Nigerian Bond yields defy international pattern:
Nigeria’s 10-year authorities bond yield elevated by 40 foundation factors to 16.63% in October, contrasting sharply with declines throughout a number of worldwide markets.
- The FMDA attributed the home motion to softer public sale demand somewhat than a financial coverage adjustment.
- The United States’ 10-year yield declined by 36 foundation factors to 4.93%, whereas Japan’s fell by 30 foundation factors.
- South Africa’s yield declined by 23 foundation factors, the United Kingdom’s by 14 foundation factors and China’s by six foundation factors.
- Kenya recorded a 13-basis-point improve to 12.53%, whereas Nigeria’s unfold over the US 10-year yield stood at roughly 11.70 proportion factors.
In Nigeria’s secondary market, common Treasury Bills yields elevated by 28 foundation factors to 18.02%, led by the nine-month instrument, which rose to 18.71%.
Average FGN bond yields elevated by 23 foundation factors to 16.18%, whereas common OMO yields declined to 18.88% from 19.81%.
At the October 19 FGN bond public sale, the DMO allotted roughly N1.2 trillion, in contrast with N748.64 billion in September. The cease charge on the 16.79% FGN September 2036 bond elevated to 17.29% from 16.79%, indicating increased borrowing prices for that instrument.
CBN OMO slowdown boosts liquidity:
The discount in October’s OMO allotments got here after substantial liquidity withdrawals in September when the CBN sold approximately N17.51 trillion in OMO securities.
Those September gross sales exceeded maturities of N10.89 trillion, ensuing in a internet withdrawal of roughly N6.62 trillion.
- In October, the CBN allotted N6.182 trillion in OMO securities against N9.051 trillion in maturities, leaving a internet reimbursement distinction of roughly N2.87 trillion, in accordance to FMDA
- Banking-system liquidity elevated by 56.75% to N7.373 trillion from its September degree, in accordance to the FMDA.
- The affiliation reported that international portfolio traders held greater than $20 billion in Nigerian OMO securities, citing its market sources.
- The CBN’s September 29 public sale had raised roughly N4.686 trillion in opposition to a proposal of N2.5 trillion, illustrating the size of earlier liquidity absorption.
The moderation in October coincided with substantial unallotted subscriptions on the closing OMO and Treasury Bills auctions.
According to the FMDA, sustaining engaging returns for international traders holding OMO securities stays an essential consideration in the CBN’s interest-rate technique.
The shift in issuance volumes additionally highlights the connection between maturing securities, recent allotments and accessible banking-system liquidity.
Naira softens regardless of $3 billion gross sales by CBN:
The naira depreciated by 0.87% to N1,338.99 per greenback in the Nigerian Foreign Exchange Market throughout October, regardless of CBN greenback gross sales exceeding $3 billion, in accordance to FMDA.
- The parallel-market premium narrowed to N40.20 from N64.24, whereas international change reserves elevated to roughly $55 billion.
- Nigeria’s Eurobond yield declined by 26 foundation factors to 7.32% as of October 29, whereas a $105.94 million Eurobond coupon cost falls due in November.
- The FMDA suggested banks to improve portfolio length selectively somewhat than aggressively pursue increased yields, noting that holders of present securities confronted modest mark-to-market losses.
- The Monetary Policy Rate remained unchanged at 23% after September’s discount, with one other Monetary Policy Committee assembly scheduled for November.
Investors will likely be monitoring the CBN’s coverage stance, exchange-rate developments and oil-price dangers linked to the Middle East. The mixture of decrease securities allotments, rising home bond yields and substantial projected inflows makes subsequent auctions essential indicators of Nigeria’s fixed-income market route.
