godash:


I did specify my bid rate with GTB for the Sept 21st auction. I simply called then emailed my instruction to their Plaza branch.

Also, I had more than the face value (but less than the total upfront payment including fees) in my account effectively re-investing the upfront interest at the same time. Won the bid and was debited the next day.

Oh. You mean you can even do it without showing up at the bank. There suppose to be a uniform standard across all the branches of the bank. Maybe the bank staff dont know what they are doing. Thanks for the info.

Must I use the branch where my account is domiciled? In your own case, is ur account domiciled at plaza branch? Can i use another branch if these people keep messing up?

godash:


I did specify my bid rate with GTB for the Sept 21st auction. I simply called then emailed my instruction to their Plaza branch.

Also, I had more than the face value (but less than the total upfront payment including fees) in my account effectively re-investing the upfront interest at the same time. Won the bid and was debited the next day.

godash ,
Let me get something straight.
Lets say you bidded for 1million but, you had 900k in your account for example.
Is that what you mean by "less than the total upfront payment including fees"? Lets say its 364 @18%.

If you don't mind can you share the email address of their plaza office.

Another question: If my previous bid is due to elapse on say 20th October , which is the next bid date. Can I put in a bid on that same day even though they are yet to repay the money back into my account? Since that is the due date they are expected to pay me back.

Matcruz:
my bid was successful with First Bank.... 13.7% for 91days ....my interest was credited today..... thanks to all the gurus in the house..... you've all really contributed in one way or the other to this successful bid coz I knew nothing about Tbills in the last ten days.

This treasury bills is completely new to me, how do u place bids, through a website or go to the bank and fill a form, then how do I know the rate to bid, please guide me @all,thanks

sureguy02:
Stanbic never bids successfully for 182 days. I think I will stop going with their rates. They always want me to invest in "alternative investments" whenever they are informing me that the bidding wasn't successful.

Oga feelamong...what's the outlook for next week?

what alternative investment?

LaconicINC:

This treasury bills is completely new to me, how do u place bids, through a website or go to the bank and fill a form, then how do I know the rate to bid, please guide me @all,thanks

Thanks for all your anticipated replies, I read a few stuff online, now i fully understand how it works, am bidding 13.5% (91 days tenor) for the next auction which is 19/10/16 though its 20/10/16 that is on CBN website, being that the last rate was 13.9%. Wish me well its my first attempt

yak:


ecobank is so annoying.

To think that I almost went with Ecobank. Please keep us updated.

Here is something I also understood, please gurus in the house correct me if I am wrong, lets say I made a bid for 100,000 naira 13% 91 days tenor and it was successful, my interest will be 13,000 roughly, divide that my 3 months that gives me approximately #4,333.33 per month. compared this to fixed deposits, that gives you maximum of 10% per annum, I think T bills is far better. Am still learning sha, maybe am wrong. I just sent Stanbic a mail requesting the form and they just did, lemme fill and send back, I will keep us updated.

TBills is far better than fixed deposits...infact comparing TB with fixed deposit is like comparing CNN with NTA

LaconicINC:
Here is something I also understood, please gurus in the house correct me if I am wrong, lets say I made a bid for 100,000 naira 13% 91 days tenor and it was successful, my interest will be 13,000 roughly, divide that my 3 months that gives me approximately #4,333.33 per month. compared this to fixed deposits, that gives you maximum of 10% per annum, I think T bills is far better. Am still learning sha, maybe am wrong. I just sent Stanbic a mail requesting the form and they just did, lemme fill and send back, I will keep us updated.

DMerciful:
TBills is far better than fixed deposits...infact comparing TB with fixed deposit is like comparing CNN with NTA

Hahaha haha

feelamong:


My FGN Bonds are not what I trade on....most times I buy the bonds to use the Coupons for targeted spending...

Moreover if I sell now, I will be making loses since I bought at 14.55% yield.

I still don't think it's a good time to do equities....would rather wait to enter in late November for the February/March sale off just before Year end results appear in late march

I concur.

I know the current TB rates are making a lot of people have second thoughts about their bonds. TB rates will always rise and fall over the period of your bond duration (in this case 5 years). I do not believe that over that time period, that you will necessarily get more than say the 15.54% you're getting from bonds.

If you don't need the funds desperately now, I advice to tough it out. Or wait till when you can sell at a higher price.

I am aligned with feel among on the equity thingy..... Unless you're a pro.

ernieboy:

what alternative investment?

I guess they mean mutual funds and fixed deposits

sanerugwei:


godash ,
Let me get something straight.
Lets say you bidded for 1million but, you had 900k in your account for example.
Is that what you mean by "less than the total upfront payment including fees"? Lets say its 364 @18%.

If you don't mind can you share the email address of their plaza office.

Another question: If my previous bid is due to elapse on say 20th October , which is the next bid date. Can I put in a bid on that same day even though they are yet to repay the money back into my account? Since that is the due date they are expected to pay me back.

Ogam feelamong, godash, other gurus. Can you answer to the questions raise below?

LaconicINC:
Here is something I also understood, please gurus in the house correct me if I am wrong, lets say I made a bid for 100,000 naira 13% 91 days tenor and it was successful, my interest will be 13,000 roughly, divide that my 3 months that gives me approximately #4,333.33 per month. compared this to fixed deposits, that gives you maximum of 10% per annum, I think T bills is far better. Am still learning sha, maybe am wrong. I sent Stanbic a mail requesting the form and they just did, lemme fill and send back, I will keep us updated.

it should be #13000 divided by 4 and not by 3....since the interest rate is per annum and 91days is 1/4 of a year ...that's #3250 for 91days

speaking from the layman perspective is 91 days not equal to 3 months? am a littke confused 120 days should be equal to 4 months nah, so why divide by 4 instead of 3, I must be missing somthing since the whole thing is new to me attached is the screen shot for the last auction for Oct 5,2016 take note of the maturity date its Jan 5, 2017 which is exactly 3 months, so why should we divide the 13,000 by 4 and not 3 please

Matcruz:


it should be #13000 divided by 4 and not by 3....since the interest rate is per annum and 91days is 1/4 of a year ...that's #3250 for 91days

Informative thread.came in now and hope to learn a lot

You divide by 4 because there are four quarters in a year.
For example if you are investing for 91 days. After calculating 0.135 x 100,000 = N13,500 (this interest is for one whole year).

To get the interest for 91 days which is a quarter of 365 days, you do this; N13,500/4 quarters = N3375 interest for a quarter ie 91 days investment.

The days of the maturity period, is it only working days or all days?

hartson:
Informative thread.came in now and hope to learn a lot

Bros, it's better late than never. Welcome on board...

I have just received this from one of my bankers....

Dear Sir/Ma,

Please be informed that there is OMO Auction today as follows:

Tenor -252 -days

Maturity date- 22/06/2017

Amount on offer- N50.00BN

Bid rate: 18.45%

Auction will close at 11.00 am (Settlement same day Debit)

We will be pleased to bid on your behalf.

Thank you for your continued patronage.

MrTour:
You divide by 4 because there are four quarters in a year.
For example if you are investing for 91 days. After calculating 0.135 x 100,000 = N13,500 (this interest is for one whole year).

To get the interest for 91 days which is a quarter of 365 days, you do this; N13,500/4 quarters = N3375 interest for a quarter ie 91 days investment.

LaconicINC:
speaking from the layman perspective is 91 days not equal to 3 months? am a littke confused 120 days should be equal to 4 months nah, so why divide by 4 instead of 3, I must be missing somthing since the whole thing is new to me attached is the screen shot for the last auction for Oct 5,2016 take note of the maturity date its Jan 5, 2017 which is exactly 3 months, so why should we divide the 13,000 by 4 and not 3 please

In simple English and easy mathematics
91 days = 3 months
365 days = 12 months

Easy mathematics
Why not first divide by 12 months
After that multiply by 3 months

Which means X/12×3= interest for 3 months

If X= 13500
Then interest = 13500/12x3 = 3375

I hope you understand better now

For Stanbic please.

What was the last rate?
When is the next bidding?

Thanks.

awesomeJ:
@ihavespoken, your post above's got my rib cracking. I actually just found out that the alert came in from MMM. A friend had registered me for it without my consent, and the alert I saw was like a welcome bonus. I got a call from this friend this evening.

Pls what is MMM?can u pls enlighten us

Good evening everyone,please did anyone do TB with access bank in the last primary auction,and what was there rate.thanks

feelamong:
I have just received this from one of my bankers....

Dear Sir/Ma,

Please be informed that there is OMO Auction today as follows:

Tenor -252 -days

Maturity date- 22/06/2017

Amount on offer- N50.00BN

Bid rate: 18.45%

Auction will close at 11.00 am (Settlement same day Debit)

We will be pleased to bid on your behalf.

Thank you for your continued patronage.

Uncle feel among
What's the minimum requirement to participate in these OMO auctions? Do you have to directly inform the treasury department of your bank that you're interested or how does it work?

Is this available to all banks or only a privileged few? Apologies for the flenty flenty questions!

battleaxe:


Uncle feel among
What's the minimum requirement to participate in these OMO auctions? Do you have to directly inform the treasury department of your bank that you're interested or how does it work?

Is this available to all banks or only a privileged few? Apologies for the flenty flenty questions!

Most bankers only alert HNIs/ Investment coys/ asset mangt firms or people that they feel may be interested becos of their past investment records with them..

I have a friend in Ecobank treasury that sends to me just for information sake

feelamong:

Most bankers only alert HNIs/ Investment coys/ asset mangt firms or people that they feel may be interested becos of their past investment records with them..
I have a friend in Ecobank treasury that sends to me just for information sake

... and ofcourse also because you're a High Net-worth Individual

1Segzy:


Oh. You mean you can even do it without showing up at the bank. There suppose to be a uniform standard across all the branches of the bank. Maybe the bank staff dont know what they are doing. Thanks for the info.

Must I use the branch where my account is domiciled? In your own case, is ur account domiciled at plaza branch? Can i use another branch if these people keep messing up?

Well I'm based outside Nigeria so i have to work through emails with my Plaza account officer/team since my account is domiciled at that branch.

Since all you're doing is passing instructions to the Treasury Department for the TB purchase, I'll expect that you can do that through any of their branches. My suggestion though is, if you find yourself near Plaza branch (or any of the branches), request to speak with someone in the relationship management team about TB purchase. Those guys some times have more information that the customer service staffs.

sanerugwei:


godash ,
Let me get something straight.
Lets say you bidded for 1million but, you had 900k in your account for example.
Is that what you mean by "less than the total upfront payment including fees"? Lets say its 364 @18%.

yes.

If you don't mind can you share the email address of their plaza office.

PM me.

Another question: If my previous bid is due to elapse on say 20th October , which is the next bid date. Can I put in a bid on that same day even though they are yet to repay the money back into my account? Since that is the due date they are expected to pay me back.

I can't speak definitively to this as I haven't gone through the entire cycle yet. But... since the TB issue date is actually Thursdays after auction Wednesday, then 91-, 182-, 364-days after the issue date will also fall on Thursdays. So upon maturity, the facevalue will land in your account earliest 1 day after another Wednesday auction date. Makes sense?

As an example, take the "maturity on" dates shown at this post (https://www.nairaland.com/878880/treasury-bills-nigeria/223#50159725). They're all Thursdays.

feelamong:
I have just received this from one of my bankers....

Dear Sir/Ma,

Please be informed that there is OMO Auction today as follows:

Tenor -252 -days

Maturity date- 22/06/2017

Amount on offer- N50.00BN

Bid rate: 18.45%

Auction will close at 11.00 am (Settlement same day Debit)

We will be pleased to bid on your behalf.

Thank you for your continued patronage.

Thank's so much. i will like you to drop it like this any time they sand to you so that it will help any of us that have money at hand . one love .

.