FunmyKemmy: @ feelamong

I sent you a mail. Kindly respond.

I don respond!

There will be primary auction for Treasury Bills on Wednesday, September 19, 2012 with details as follows;

91 days tenor with maturity - 20-Dec-12, Amount on Offer N37.49 billion
182 days tenor with maturity - 21-Mar-13, Amount on Offer N63.73 billion

There are also maturities on Thursday September 20, 2012 as follows:

91 days N37.49 billion
182 days N63.73 billion

The 91-day bill is trading in the secondary market at 12.25% (offer).

Yields have continued to drop over the past week as a result of an increase in demand for bills. The drop averaged 150 bps(1.50%) and has been attributed to the influx of foreign investors in the market.

Expectations at the auction:

91 days: 12.00% - 13.00%
182 days: 12.85% - 13.30%

**note these are personal opinion and not in advisory capacity. also do not represent CBN official rates

coolguyz:
Expectations at the auction:

91 days: 12.00% - 13.00%
182 days: 12.85% - 13.30%

**note these are personal opinion and not in advisory capacity. also do not represent CBN official rates

Bros, this rates are definitely not doing well at the moment. I have spoken to my Fund Manager and several other managers and they all agree that the rates would be coming down well. All the effect of the JP Morgan's announcement! Now all the foreign investors are trooping to naija to buy out Cheap Tbills!!

Am not bidding this week but i have advised a couple of friends to put in for 12.25%

feelamong: The next Tbills Auction is scheduled for the 6th of Sept 2012.

Just wondering what the rates will look like.....most fund managers seem to agree that we will likely be seeing a slight drop in the rates!

The next three days will defitnitely give us more clue on the direction of the market!

Any other viable means of profitable investment boss?
Got a mail from Access Bank, advertising their Fixed Rate Deposit. Minimum Capital is N1m, at 14%pa Interest rate.. Any ideas or suggestions?

Ojix85:


Any other viable means of profitable investment boss?
Got a mail from Access Bank, advertising their Fixed Rate Deposit. Minimum Capital is N1m, at 14%pa Interest rate.. Any ideas or suggestions?

From all indications this Access Bank deal will be the sweet deal soonest! But I can assure you that as soon as Tbills yield drop, this rate will fall too!

But I like Tbills cos I can actually get my Interest upfront and there is no witholding tax attached to it!

feelamong:

From all indications this Access Bank deal will be the sweet deal soonest! But I can assure you that as soon as Tbills yield drop, this rate will fall too!

But I like Tbills cos I can actually get my Interest upfront and there is no witholding tax attached to it!

Good points, buddy. Earlier this year, I visited practically ALL the popular Nigerian banks (GTB, First Bank, Diamond, etc) and they were offering between 4 & 8% interest on their Fixed Deposit Accounts. However, Stanbic IBTC's 10.5% was the highest. I went with them, it later dropped to 10.25% and I 'ran' for cover... yes, I went for Treasury Bills. My bid of 14% was successful but I only succeeded in getting 13.4% the next time I placed a bid (both times for 91 days). I was just thinking of what to do next when this Access Bank info got to me... 14%? Very interesting indeed. POINT OF CAUTION HERE: In February/March 2012 when I 'politely complained' about GTB's 7.5% Fixed Deposit Interest Rate when IBTC's was 10.5%, the young bank official attending to me confidently informed me that IBTC might be counting ALL the days of the month to calculate their 30, 90, 180, 364 days. He said that GTB only reckoned with WORKING DAYS. On the surface, this 'assumed' GTB approach appeared okay but I did not, and still do not, have the time to actually confirm this.

The 'working days' theory is a bit confusing, isn't it? Let someone please help us sort it out. Thank you. Anyway, if the Access bank story is true, AND they are using WORKING DAYS ONLY, (according to GTB) then let's fly man! God bless Nigeria.

How is Access Bank able to give 14%, what is the catch??

MyMail2D: How is Access Bank able to give 14%, what is the catch??

If you know what is happening in the Over night market by banks then you will know the catch! here they give overnite calls deposits to other banks desperate for funds at 18-20%..moreover am aware that banks still lend at an average of 33-37%p.a to traders in Idumota and Aspanda

My investor is advising me to go for 12.5% for 182 days. Are the rates going this low?
Inflation is about 12%, these is making T-Bills not interesting oo...

MyMail2D: My investor is advising me to go for 12.5% for 182 days. Are the rates going this low?
Inflation is about 12%, these is making T-Bills not interesting oo...

Yea; the rates dont look too interesting to an average Joe anymore! But 12.5% for 182 days should be the rite bid!
As for me I will reduce my investments here and play more into the capital market. My international Breweries share has already returned 100% after just 3 months! Time to do more research in the capital market as that is where its happening at the moment!

Time to look at japaul Plc wella

The Monetary Policy Committee has concluded its meeting held on Monday, September 17, 2012 and Tuesday, September 18, 2012.

The decisions reached at the end of the meeting are:

1. Retained the Monetary Policy Rate (MPR) at 12%, with the symmetric corridor of +/-2%
2. Retained the Cash Reserve Ratio (CRR) at 12%, and
3. Retained the Net Foreign Exchange Open Position (NOP) at 1%.

The major considerations of the MPC are:

1. Ensuring robust external reserves position.
2. Mitigating negative effect of increased Foreign Portfolio Investment (hot money), and
3. The inflationary impact of high "core inflation'.

coolguyz: The Monetary Policy Committee has concluded its meeting held on Monday, September 17, 2012 and Tuesday, September 18, 2012.

The decisions reached at the end of the meeting are:

1. Retained the Monetary Policy Rate (MPR) at 12%, with the symmetric corridor of +/-2%
2. Retained the Cash Reserve Ratio (CRR) at 12%, and
3. Retained the Net Foreign Exchange Open Position (NOP) at 1%.

The major considerations of the MPC are:

1. Ensuring robust external reserves position.
2. Mitigating negative effect of increased Foreign Portfolio Investment (hot money), and
3. The inflationary impact of high "core inflation'.

Bros; is Tbills still worth a punt?

The incentive it still has to offer is that it is liquid, risk-free and competitive in face of other money market instruments. No investment house will pay you 10% on a few millions currently unless you doing a long term and usually its volume based.

For individuals, think of your cost of funding (its your money at zero interest thus your cost can be equated to be your opportunity cost). What i think the suave investor should think of now is diversified investment basket.

Thinking of the Capital market too but waiting for the usual January offload after holiday break and get out by April when companies start releasing results.

coolguyz: The incentive it still has to offer is that it is liquid, risk-free and competitive in face of other money market instruments. No investment house will pay you 10% on a few millions currently unless you doing a long term and usually its volume based.

For individuals, think of your cost of funding (its your money at zero interest thus your cost can be equated to be your opportunity cost). What i think the suave investor should think of now is diversified investment basket.

Thinking of the Capital market too but waiting for the usual January offload after holiday break and get out by April when companies start releasing results.

But if one could get 14% in dat Access bank deal; doesnt it look better?

Guys,

Below are the CBN stop rates for the treasury bills auction held today;

91 days was at stop rate of 12.00%
182 days was at stop rate of 12.60%

Rates have really gone way DOWN. . . . .

feelamong:

But if one could get 14% in dat Access bank deal; doesnt it look better?

Well, i guess so but dependent on the conditions attached to it. i know Stanbic came up with something similar but minimum of 90days and a minimum principal too. If not too excessive, that'l be a good move. So to all those that lost at the auction today, you may make further enquiries at Access and lets see what it holds as per conditions.

coolguyz: Guys,

Below are the CBN stop rates for the treasury bills auction held today;

91 days was at stop rate of 12.00%
182 days was at stop rate of 12.60%

Rates have really gone way DOWN. . . . .

Omo, these rates are really down o!! Chai!! Thunder fire satan!!

These foreign investors don carry their 'hot money' enter naija dey spoil our market small small o!

feelamong:

Omo, these rates are really down o!! Chai!! Thunder fire satan!!

These foreign investors don carry their 'hot money' enter naija dey spoil our market small small o!

Laaaffss. . . .but guys in financial institution are hoping that with yields coming down, the next MPC meeting may deem fit to reduce MPR so funding costs come down. If that ends up being the case, the rates will look good again to them. For now, foreign investors, fund managers, PFAs, retail banks and individuals are the ones still finding the rates attractive.

@OP. Absolute wonderful job here. Don't know if you have heard of GTAsset Mgt Ltd 'mypass' investment scheme? Pls do advice for we who are not millionares yet to invest in FD.

Thanks
See u at the top.

Whoa.... [color=#000099][/color]
I was able to get in at 12.50%. I am now looking for another safe investment option as I am not sure of doing TBills at a lower rate.
Any update on the 14% from Access bank??
Thx.

MyMail2D: Whoa.... [color=#000099][/color]
I was able to get in at 12.50%. I am now looking for another safe investment option as I am not sure of doing TBills at a lower rate.
Any update on the 14% from Access bank??
Thx.

On the Access bank deal, I would reach out to my guys that are marketers there ASAP and give the house a feed back soonest

http://af.reuters.com/article/nigeriaNews/idAFL5E8KKHO120120920

Nigeria issues 101 bln naira in T-bills, yields down

LAGOS, Sept 20 (Reuters) - Nigeria has sold 101.22 billion naira ($642.26 million) in treasury bills with maturity ranging from three months to six month, the central bank said on Thursday, and yields were down more than 100 basis points due to strong demand for the paper.

The central bank sold 37.49 billion naira of 91-day paper at a yield of 12 percent, lower than the 13.64 percent it offered at the previous auction.

It sold 63.73 billion naira in 182-day paper at 12.6 percent, down from 13.80 percent previously.

Total subscriptions were at 220.88 billion naira, while demand for the 182-day bond was the heaviest, at 143.48 billion naira.

Nigeria's monetary authorities left the benchmark interest rate on hold at 12 percent on Tuesday, while inflation rate declined to 11.7 percent in August, from 12.8 percent previously.

Nigeria, Africa's second biggest economy after South Africa, issues treasury bills regularly to reduce money supply, curb inflation and help lenders manage their liquidity. ($1 = 157.60 naira) (Reporting by Oludare Mayowa; Editing by Tim Cocks)

For all those that missed out in the last treasury Bills Auction. Another Tbills Auction comes up on the 27th of this month!!!

From all indications we are gonna see more drop in the yields!!

http://af.reuters.com/article/nigeriaNews/idAFL5E8KLD3I20120921?sp=true

Nigerian yields seen easing on strong demand

Yields on Nigerian Treasury bills are seen falling next week as investor appetite grows ahead of the country's inclusion on the JP Morgan bond index, while rates on Kenyan short term debt are seen ticking up.

NIGERIA

Yields at next week's Treasury bill auction in Nigeria are expected to fall further due to increased investor appetite ahead of Nigeria's inclusion on the JP Morgan index and on the back of falling inflation.

Nigeria plans to issue Treasury bills of all maturities worth a total 104.70 billion naira ($664.34 million) at its regular bi-monthly debt sale on Sept. 27.

At this week's auction, yields on the 91- and 182-day paper fell by more than 100 basis points.

Dealers said some foreign investors including pension fund and local fund managers were taking position in the market ahead of Nigeria's inclusion on the JP Morgan index. The expected inflow of offshore interest in the local debt market to drive yields further down in the near term.
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TB is good.

@all

mind you,in evaluating your TBills returns, you should consider its effective interest rate being an upfront deal (zero coupon) when comparing to other interest bearing back-end deals.

feelamong:

On the Access bank deal, I would reach out to my guys that are marketers there ASAP and give the house a feed back soonest

Finally was able to confirm from my guys working in Access Bank Plc. There is actually no such product with 14% Interest rates!

coolguyz: @all

mind you,in evaluating your TBills returns, you should consider its effective interest rate being an upfront deal (zero coupon) when comparing to other interest bearing back-end deals.

Yea!! That is one of the things I like about Tbills. I get my upfront immediately and I get to invest it back into my own daily business. Effectively am getting more for the funds invested as the upfront interest also gets to do some work to generate more money before the maturity date!!

CBN STOP RATES!!

91 days - 12.7%

181 days - 13%

364 days - 13.05


Rates are looking a lot better than the last outing