Govt raises N$1.6b in Treasury bill auction, targets N$1.64b tomorrow

The Namibian government raised N$1.595 billion through four Treasury bill auctions held on 27 May 2026, with investors demanding yields of up to 7.54% on the longest-dated securities.

Treasury bills are short-term debt instruments through which investors, including pension funds, banks and insurance companies, lend money to the government. The funds are used to manage cash flow requirements, refinance maturing debt and help finance budget obligations.

Results released by the Bank of Namibia show that investors submitted bids worth N$2.5 billion across the 91-day, 182-day, 273-day and 363-day Treasury bills, exceeding the N$1.595 billion on offer.

The strongest demand was for the 182-day Treasury bill maturing on 27 November 2026. Investors submitted bids worth N$906.2 million against an offer of N$360 million. The government ultimately allocated N$394.25 million.

The 273-day Treasury bill maturing on 26 February 2027 attracted bids worth N$600.67 million against an offer of N$390 million, with N$400 million allocated.

Demand was more modest for the shortest-dated 91-day Treasury bill, which attracted bids worth N$474.53 million against an offer of N$430 million. The government allocated the full amount.

The 363-day Treasury bill received bids worth N$520.75 million against an offer of N$415 million, with N$370.75 million allocated.

The auction results indicate that investors continue to demand higher returns for lending over longer periods. The weighted average yield increased from 7.05% on the 91-day bill to 7.28% on the 182-day bill, 7.31% on the 273-day bill and 7.37% on the 363-day bill.

The highest accepted yield was 7.541% on the 363-day Treasury bill, while the lowest was 6.98% on the 91-day instrument.

New auction scheduled

The government is due to return to the domestic money market this week to raise a further N$1.64 billion through four Treasury bill issues.

According to a Bank of Namibia tender notice, the offering comprises N$405 million in a 91-day Treasury bill, N$410 million in a 182-day bill, N$400 million in a 273-day bill and N$425 million in a 364-day bill.

The auction is scheduled for Thursday, 4 June, with settlement taking place the following day.

Most of the proceeds will be used to refinance maturing Treasury bills worth N$1.525 billion. These include N$395 million in a 91-day bill, N$390 million in a 182-day bill, N$370 million in a 273-day bill and N$370 million in a 364-day instrument.

Investors wishing to participate must submit bids through Bloomberg or the Bank of Namibia's online auction platform by 4 June. Bids must be made in multiples of N$10 000, with a minimum investment of N$10 000.

Overall, the government received 79 bids across the four instruments, of which 64 were accepted either fully or partially, highlighting continued liquidity in Namibia's domestic money market.