inze:


. . . 20,000

Ah ahn? Bros, e no bad reach like that na. 0.01% and other minor charge no reach 10% of wetin you quote na.

Lol.. that's why I used the word 'atmost' depending on the bank. So still in place Sir

40manlappy:
Dear gurus, a friend got secondary market offers of 318 days at 17.00% and 184 days at 16.90%.

What do you think? I am not sure of what to advise.

cc: feelamong, freeman67, 2n2k, other gurus

I would pick 184 days; 16.9%.

I think it is a better deal as the last auction had 17.2 for 182 days and 18.4 for 365 days.

I think the disparity is too much for the 314 days option.

My opinion though!

please guys....who has gist on the latest MPC meeting held yesterday.


were there any changes.

The Committee’s Decisions

The Committee, in consideration of the headwinds in the domestic economy and the uncertainties in the global environment, decided by a unanimous vote to retain the MPR at 14.0 per cent alongside all other policy parameters. In summary, the MPC decided to:

(i) Retain the MPR at 14 per cent;

(ii) Retain the CRR at 22.5 per cent;

(iii) Retain the Liquidity Ratio at 30.00 per cent; and

(iv) Retain the Asymmetric corridor at +200 and -500 basis points around the MPR





Thank you for listening.

Godwin I. Emefiele



Governor, Central Bank of Nigeria

24th January, 2017

see updates.....above........so rates would certainly remain dsame.

zamirikpo:



see updates.....above........so rates would certainly remain dsame.

In other words, the economy continues to run on autopilot

@c300........no be small thing

we are cruising backward with snail speed.

at least NTB interest rate would keep our savings at the same value.

@battleaxe

Thanks for your response. He eventually decided not to take the offer and wait for next week's auction.

My own TB matures next week and I am thinking of going for 364 days this time around. Is 18.4% a reasonable rate to work with?

Looping: feelamong, zamirikpo

kateskitty:
Please who can help me with this?
If someone wants to invest 5,000,000 in Treasury Bills for 1 year, how much could the person get in terms of interest rate?

THanks.

get the interest calculating spreadsheet
:

https://www.nairaland.com/878880/treasury-bills-nigeria/212#49454079

please gurus in the house, what bank is the best for t bills, is Zenith bank good for tbills and like what's their rate?

Good evening everyone,

Please, which would you suggest between NTB & Money markets with reasons. I need your advice and suggestion in reaching a conclusion.

Thanks.

Hello All,

Please alagbas, I will appreciate some guidance. I need to fill out the FBN TCB Form to enable me purchase at the next bid round (next Wednesday I think). There are some questions I need guidance on, such as:

1. Do you want to invest the interest payable upfront with this investment - I picked "yes". Is there any implications here?
2. On Maturity - should I authorize the bank to roll over or terminate. Is there any implications to terminating especially if I want to continue.

There is no portion of the form which permits me to stake my own discount rate.

Any experience with First Bank which would guide me on the above?

Can anybody please help break all this down for me? I'm new here and do not understand the whole bidding thing. How do you even start? How do you know the next rate? What is secondary market? How do you get info on when the auction is? What's your business with the auction? What forms your decision of which bank to buy from? How much vat is deducted? Which is advisable? 91 days or more?

Abeg make una no vex, I'm just new to all this. I've tried reading through but still don't get it. Your help will be appreciated.

raii:
By Money markets you mean products offered by banks right? At present NTB (treasury bills) is a better option. The rates are often higher than money market products.

PS: I hear Stanbic MMF is fantastics. Do check it out.

By Money markets you mean products offered by banks right? At present NTB (treasury bills) is a better option. The rates are definitely higher than money market products. MM products just mimic NTBs so go for the real deal.

yeancahwunmi:
Good evening everyone,

Please, which would you suggest between NTB & Money markets with reasons. I need your advice and suggestion in reaching a conclusion.

Thanks.

WhyNa:
Can anybody please help break all this down for me? I'm new here and do not understand the whole bidding thing. How do you even start? How do you know the next rate? What is secondary market? How do you get info on when the auction is? What's your business with the auction? What forms your decision of which bank to buy from? How much vat is deducted? Which is advisable? 91 days or more?

Abeg make una no vex, I'm just new to all this. I've tried reading through but still don't get it. Your help will be appreciated.

I am no guru in Tbills, but I will attempt to answer some of your questions:
How do you start: Take time and read this thread, from page (0), if you want to fully understand Tbills
How do you know the next rate: You can't, but you can predict based on historical data
Secondary market: Primary market is when you bid and buy treasury bills from the CBN. Secondary market is like an over-the-counter transaction, where you buy tbills from someone who bought from the CBN. Typically, some people need money before their investment matures but since tbills cannot be terminated before maturity, they sell to someone who is interested
How do you get info on when the auction is: It is held forthnightly. If you google 'CBN treasury bills timetable for 2017', you will find useful data. Otherwise, follow this thread bumper to bumper and you will get such and other info
What's your business with the auction: All you need to do is walk into any branch of any bank you have an account with and fill a form. For the rate, you can go with the bank's rate or choose your own rate. However, some banks don't allow you choose your own rate
VAT is not deducted and your interest is paid upfront (i.e. immediately your bid is successful). As for number of days, that is up to you to decide, if you know you won't need the money for the next 1 year, by all means go with 364 days. Of course, the longer the tenor, the higher the return.

To start, visit your bank and request them to purchase treasury bills on your behalf.

The primary market is a fresh sale of t.bills held every two weeks. Every other sale in between the two weeks is called the secondary market. The dates of the primary market is determined by the CBN.

For rates, your banker can pen down a rate following what the secondary market and the last primary market auction sold. But you can follow this thread to get indicative rates.

Charges are quite minimal: Commission is 0.125% of your interest; Custodian fees: 0.1% of amount purchased (with tenor factored) and VAT is 5% of the custodian fees. Trust me, the total wouldn't dent your interest at all.

Tenor: the tenor/maturity to purchase depends on you really. But the longer your tenor, the higher your interest. I often switch between 182 ad 364 days

For banks: GTB, Diamond and Zenith are not bad at all.

WhyNa:
Can anybody please help break all this down for me? I'm new here and do not understand the whole bidding thing. How do you even start? How do you know the next rate? What is secondary market? How do you get info on when the auction is? What's your business with the auction? What forms your decision of which bank to buy from? How much vat is deducted? Which is advisable? 91 days or more?

Abeg make una no vex, I'm just new to all this. I've tried reading through but still don't get it. Your help will be appreciated.

I am not so familiar with FBN but for:

1. The upfront interest would probably be used to purchase treasury bills or placed in a fixed tenor/call account instead of being paid to your bank account.

2. If you wish to continue investing in treasury bills when the maturity period of this current purchase ends, choose roll over. If you will be needing your money at the end of the tenor, choose terminate. There is no implication. The bank would pay your principal sum to your account.

Please ask your banker why there is no portion for stating your discount. That's not right. Please make that clear to him/her.

Fynebouy:
Hello All,

Please alagbas, I will appreciate some guidance. I need to fill out the FBN TCB Form to enable me purchase at the next bid round (next Wednesday I think). There are some questions I need guidance on, such as:

1. Do you want to invest the interest payable upfront with this investment - I picked "yes". Is there any implications here?
2. On Maturity - should I authorize the bank to roll over or terminate. Is there any implications to terminating especially if I want to continue.

There is no portion of the form which permits me to stake my own discount rate.

Any experience with First Bank which would guide me on the above?

18.40% for 364 days isn't bad IMO because the last stop rate was 18.60%. Let's hear what the oga at the tops have to say.

40manlappy:
@battleaxe

Thanks for your response. He eventually decided not to take the offer and wait for next week's auction.

My own TB matures next week and I am thinking of going for 364 days this time around. Is 18.4% a reasonable rate to work with?

Looping: feelamong, zamirikpo

Guys thanks a lot for taking out time explain.

Regarding giving your own rate, if it's allowed, I suppose you should give something higher. Now the question is, does it always work? I mean why would they want to go with your own rate? Isn't there like a standard rate or does it have anything to do with people who need money before their investment matures? Are there any implications/delays in giving your own rate?

raii:
To start, visit your bank and request them to purchase treasury bills on your behalf.

The primary market is a fresh sale of t.bills held every two weeks. Every other sale in between the two weeks is called the secondary market. The dates of the primary market is determined by the CBN.

For rates, your banker can pen down a rate following what the secondary market and the last primary market auction sold. But you can follow this thread to get indicative rates.

Charges are quite minimal: Commission is 0.125% of your interest; Custodian fees: 0.1% of amount purchased (with tenor factored) and VAT is 5% of the custodian fees. Trust me, the total wouldn't dent your interest at all.

Tenor: the tenor/maturity to purchase depends on you really. But the longer your tenor, the higher your interest. I often switch between 182 ad 364 days

For banks: GTB, Diamond and Zenith are not bad at all.

Jesusbabygirl:
I am no guru in Tbills, but I will attempt to answer some of your questions:
How do you start: Take time and read this thread, from page (0), if you want to fully understand Tbills
How do you know the next rate: You can't, but you can predict based on historical data
Secondary market: Primary market is when you bid and buy treasury bills from the CBN. Secondary market is like an over-the-counter transaction, where you buy tbills from someone who bought from the CBN. Typically, some people need money before their investment matures but since tbills cannot be terminated before maturity, they sell to someone who is interested
How do you get info on when the auction is: It is held forthnightly. If you google 'CBN treasury bills timetable for 2017', you will find useful data. Otherwise, follow this thread bumper to bumper and you will get such and other info
What's your business with the auction: All you need to do is walk into any branch of any bank you have an account with and fill a form. For the rate, you can go with the bank's rate or choose your own rate. However, some banks don't allow you choose your own rate
VAT is not deducted and your interest is paid upfront (i.e. immediately your bid is successful). As for number of days, that is up to you to decide, if you know you won't need the money for the next 1 year, by all means go with 364 days. Of course, the longer the tenor, the higher the return.

yeancahwunmi:
Good evening everyone,

Please, which would you suggest between NTB & Money markets with reasons. I need your advice and suggestion in reaching a conclusion.

Thanks.

primarily, the advantage money market investment has over treasury bills is the flexibility in redeeming your investment. For most MMF, you can redeem after the initial 30 days without incurring any penalty. You can even withdraw earlier albeit with a little penalty.
Aside this flexibility in withdrawals, the rates for funds like StanbicIBTC MMF compares with tbill rates as follows:
At about 17% currently, It
-beats 91-day NTB
-is almost at par with 182-day NTB(could be better off if your bank is funny)
- below 364-day NTB, by offering about 1,500 less in returns for every 100,000 invested.
The best thing is having a portfolio containing a mix of these investments, so you can leverage on the pros of each of them.

raii:
To start, visit your bank and request them to purchase treasury bills on your behalf.

The primary market is a fresh sale of t.bills held every two weeks. Every other sale in between the two weeks is called the secondary market. The dates of the primary market is determined by the CBN.

For rates, your banker can pen down a rate following what the secondary market and the last primary market auction sold. But you can follow this thread to get indicative rates.

Charges are quite minimal: Commission is 0.125% of your interest; Custodian fees: 0.1% of amount purchased (with tenor factored) and VAT is 5% of the custodian fees. Trust me, the total wouldn't dent your interest at all.

Tenor: the tenor/maturity to purchase depends on you really. But the longer your tenor, the higher your interest. I often switch between 182 ad 364 days

For banks: GTB, Diamond and Zenith are not bad at all.

please I was at Zenith bank today to get info on tbills and the bank official told me, 500k is not enough to buy tbills that 1M is their minimum, please how true is this?

Fynebouy:
Hello All,

Please alagbas, I will appreciate some guidance. I need to fill out the FBN TCB Form to enable me purchase at the next bid round (next Wednesday I think). There are some questions I need guidance on, such as:

1. Do you want to invest the interest payable upfront with this investment - I picked "yes". Is there any implications here?
2. On Maturity - should I authorize the bank to roll over or terminate. Is there any implications to terminating especially if I want to continue.

There is no portion of the form which permits me to stake my own discount rate.

Any experience with First Bank which would guide me on the above?

An 18% discount on a 364 day investment has true yield of 21.95%. The same rate for a 182-day tenor is of a true yield of 19.78%
When you choose to invest the upfront interest payable on your investment, intstead of being paid an upfront interest of 18,000 on your 100,000, you don't get any interest at the inception of your investment, but at maturity you will get 121,950 instead of 100,000. This implies an extra 3,950 on every 100,000 invested for a year.

You can choose to terminate even if you yet have future plans to re-invest. it is better that way because by the time the investment matures you may have other plans for the funds, or you may want to use another bank or investment house, if you choose to roll over just like that, it may be difficult to access the funds on maturity. reinvesting on maturity is as simple as going back to the bank and re-instructing them. there are no hassles.

For most FBN branches that I know, you'd hardly be allowed to specify your own rate, rather, you'll have to go with their own rate, which oftentimes is above 90% of CBN's stop rate.

You should also know that on the very day you submit your bid, FBN will pull the funds from your account, and on the settlement day for the next auction, you'll get your upfront interest credited if it applies based on your investment instructions.

abdulahi001:


please I was at Zenith bank today to get info on tbills and the bank official told me, 500k is not enough to buy tbills that 1M is their minimum, please how true is this?

Very true for most of their branches. However there are several other banks that take 100Gs, and yet offer great rates.

awesomeJ:

Very true for most of their branches. However there are several other banks that take 100Gs, and yet offer great rates.

please mention few that you know.

abdulahi001:

please mention few that you know.

FBN, StanbicIBTC, I guess GTB too.

guyz.....make sure ur bids are ready by monday.............i think the nxt auctions are on the 1st of febuary.


am looking to bid 18.50% for 364days. via skyebank

awesomeJ:

FBN, StanbicIBTC, I guess GTB too.

maybe I should open an account with stanbic, I was at Sterling today regards D tbills but not sure of the quality of their service.
please do u mind giving me ur digits so we could chat better on whatsapp?

@moneymouthed.......making money without doing anything like u explained above is like scam to me.


pls expansiate on what u really did....or ......do in that site for better understanding.

am sure people want to earn their pay.

Fynebouy:
Hello All,

Please alagbas, I will appreciate some guidance. I need to fill out the FBN TCB Form to enable me purchase at the next bid round (next Wednesday I think). There are some questions I need guidance on, such as:

1. Do you want to invest the interest payable upfront with this investment - I picked "yes". Is there any implications here?
2. On Maturity - should I authorize the bank to roll over or terminate. Is there any implications to terminating especially if I want to continue.

There is no portion of the form which permits me to stake my own discount rate.

Any experience with First Bank which would guide me on the above?

1. It depends on what you want I.e your investment goal. If you intent to use the returns instantly.. Paying it upfront is the sure thing but if do not have need for it at the moment, it is better invested with the principal.

2. Personally I think it is better to ask them to roll over. If you have needs for your money you can go to the bank and ask them to terminate at maturity..No big deal.
Also if you choose to roll over, So long as their bid keep succeeding, you will not have any need of going there always for same transaction except you want to inquire about the growth of investment
However, if you decide to terminate and keep going back for reinvestment any auction day you are unable to drop your request early and it passes, you will loose two weeks because first bank only do secondary market when there is an existing TB holder willing to sell.

awesomeJ:

primarily, the advantage money market investment has over treasury bills is the flexibility in redeeming your investment. For most MMF, you can redeem after the initial 30 days without incurring any penalty. You can even withdraw earlier albeit with a little penalty.
Aside this flexibility in withdrawals, the rates for funds like StanbicIBTC MMF compares with tbill rates as follows:
At about 17% currently, It
-beats 91-day NTB
-is almost at par with 182-day NTB(could be better off if your bank is funny)
- below 364-day NTB, by offering about 1,500 less in returns for every 100,000 invested.
The best thing is having a portfolio containing a mix of these investments, so you can leverage on the pros of each of them.

Those rates up there are still poorer than the true yield of 182 and 364 day tenors. Plus you get your interest upfront which you can reinvest I.e. compound. With an MMF you get your interest at the end of a quarter.

The other advantage of an MMF is that you can start with as little as 5k. What one can do is to use an MMF to build up funds to a sizeable amount then withdraw to do TB. The returns are far better than FD and savings accounts.