Chamwe Kaira
The Bank of Namibia (BoN), acting as agent for government debt issuance and management, conducted its first treasury bills auction for 2026 last Thursday, with demand remaining firm across all maturities.
The auction, held on 29 January 2026, attracted total bids of about N$2.2 billion, with N$1.512 billion allocated across four treasury bill tenors.
The bills covered 90-day, 182-day, 273-day and 364-day maturities and all settled on 30 January.
Bid-to-cover ratios ranged between 1.10 and 1.97, showing continued investor interest in short-term government paper.
For the 90-day treasury bill maturing on 30 April 2026, the government allocated N$352 million from bids totalling N$516.44 million.
Thirteen bids were submitted, with nine accepted. The weighted average yield stood at 7.43429%, while accepted yields ranged from 7.40% to 7.44%. The bid-to-cover ratio was 1.47.
In the 182-day treasury bill auction, maturing on 31 July 2026, allocations amounted to N$380 million against bids of N$510.81 million.
Twenty bids were received, of which 15 were successful. The weighted average yield was 7.48228%, with yields ranging between 7.40% and 7.52%. The bid-to-cover ratio for this tenor was 1.34.
The 273-day treasury bill maturing on 30 October 2026 recorded bids of N$427.14 million, with N$390 million allocated.
A total of 37 bids were submitted and 32 were accepted. The weighted average yield was 7.49619%, while accepted yields ranged from 7.46% to 7.59%. The bid-to-cover ratio stood at 1.10.
The strongest demand was seen in the 364-day treasury bill maturing on 29 January 2027. Bids totalled N$768.81 million against an offered amount of N$390 million.
Fourteen of the 24 bids were successful. The weighted average yield settled at 7.45776%, with the lowest accepted yield at 7.425% and the highest at 7.70%. The bid-to-cover ratio for the one-year bill was 1.97.
Observer Money data shows yields remained stable along the short end of the yield curve, with demand strongest for longer-dated treasury bills.
Simonis Storm said in its auction commentary that demand remained solid despite easing from the previous sale.
“This is a slowdown from the N$2.7 billion submitted at the previous auction; the level of demand has decreased, the liquidity environment is still at a healthy level, and oversubscription at auctions continues to be at good levels.”
Caption
The central bank’s first treasury bills auction for 2026 attracted N$2.2 billion in total bids.
- Photo: Contributed
