RFA Breakfast Paper - October 28, 2026
DMO Rejects ₦1.84trn of T-Bill Bids
The Debt Management Office rejected ₦1.84trn of bids at Wednesday's Nigerian Treasury Bills auction, allotting only ₦71.16bn against an ₦800bn offer and ₦1.908trn of subscriptions. The 364-day stop rate fell 10bps to 15.80%, while the 91-day and 182-day bills cleared at 15.40% and 15.79%. Demand was concentrated in the one-year bill, which drew ₦1.84trn but was allotted just ₦38.38bn. Banking-system liquidity had risen to ₦8.59trn ahead of the sale on ₦2.13trn of OMO maturities, and the DMO chose to cap borrowing costs rather than accept bids as high as 18.24%. It is the second straight auction with most bids unfilled. For investors, the unallotted cash is likely to move into secondary-market bills and OMO paper, extending the decline in average T-bill yields to 17.47% from 18.21% on 14 October and keeping downward pressure on naira fixed-income yields in the near term.
Stocks Edge Up as Fed Holds; 10Y Tops 5%
U.S. stocks rose for a third straight session after the Fed held rates at 3.75%–4.00% in a 10–2 vote, with two officials dissenting in favour of a hike. The S&P 500 gained 0.28% and the Nasdaq 0.27%, led by technology (+0.80%) as a record quarter from SK Hynix revived the chip trade, while utilities and real estate lagged. The 10-year Treasury yield rose 6bps to 5.05%, its largest gain in a month, as markets priced a December hike. Thursday's Q3 GDP and PCE data will test that view.
Bank Sell-Off Pulls NGX ASI Down 0.44%
The NGX All-Share Index fell 0.44% to 252,882.78 on Wednesday, ending a three-session rally that set a record close on Tuesday, as ₦718.95bn of market value was erased. Banks drove the decline: the NGX Banking Index dropped 2.36% on profit-taking, led by a 10.00% fall in First HoldCo to ₦139.50, with Fidelity Bank (-3.18%), GTCO (-1.79%) and Wema Bank (-1.61%) also lower. UBA's 6.83% gain to ₦43.00 on 38.48m shares limited the damage. Breadth was negative at 26 gainers to 30 decliners. Profit-taking after record highs points to near-term consolidation, with bank valuations sensitive to nine-month earnings.
