The Debt Management Office (DMO) has raised a total of ₦1.144 trillion at its first Nigerian Treasury Bills (NTB) auction of 2026, with stop rates increasing across all tenors amid sustained strong investor demand for government securities.
The auction, conducted on January 7, secured ₦108.17 billion from the 91‑day bill, ₦48.23 billion from the 182‑day paper, and ₦987.78 billion from the 364‑day tenor.
The outcome reflected a clear upward re‑pricing of risk‑free assets, particularly at the long end of the yield curve, as investors sought the safety of government instruments to hedge against inflationary pressures and policy uncertainty.
Despite higher yields, demand remained robust, highlighting strong system liquidity and investors’ willingness to lock in elevated returns.
The 364‑day paper dominated the auction, with subscriptions reaching about ₦1.38 trillion against an offer size of ₦800 billion. Its stop rate climbed to 18.47%, representing the largest increase across the curve.
Market analysts attributed the strong appetite to investor preference for longer‑dated securities that provide higher yields and protection against reinvestment risk in a high‑interest‑rate environment.
Global Economic Outlook
Meanwhile, global economic growth is projected to slow slightly in 2026. According to the United Nations World Economic Situation and Prospects 2026 report:
- Global output: Expected to expand by 2.7%, down from 2.8% in 2025 and below the pre‑pandemic average of 3.2%.
- United States: Growth forecast at 2% in 2026, up from 1.9% in 2025, supported by monetary and fiscal easing.
- European Union: Growth projected to ease to 1.3% from 1.5%, reflecting higher US tariffs and geopolitical tensions.
- CIS & Georgia: Stable at 2.1%, despite strain from the war in Ukraine.
- East Asia: Output growth to slow to 4.4% from 4.9%; Japan’s economy expected to expand by 0.9%, down from 1.2%.
- South Asia: Forecast at 5.6%, slightly below 5.9%, driven by India’s projected 6.6% expansion.
- Western Asia: GDP growth expected to rise to 4.1% from 3.4%.
- Africa: Projected to grow by 4%, marginally higher than 3.9% in 2025, though challenged by debt and climate shocks.
- Latin America & Caribbean: Output growth expected at 2.3%, down from 2.4%, reflecting moderate demand and gradual investment recovery.
The UN report noted that global trade remained resilient in 2025, expanding by a stronger‑than‑expected 3.8% despite heightened policy uncertainty and rising tariffs.
However, trade growth is projected to slow to 2.2% in 2026 as these pressures persist.
Rate, Like 👍, Comment 💬, Share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
WhatsApp Channel
Telegram Channel
