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CBN Sells N187b T-bills In One Week As Lending Rate Falls - Business - Nairaland

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CBN Sells N187b T-bills In One Week As Lending Rate Falls by dipoolowoo: 1:56am On Aug 19, 2018
By Dipo Olowookere

Treasury bills worth N186.92 billion were sold by the Central Bank of Nigeria (CBN) last week via both the primary and secondary markets.

While N33.38 billion worth of the bills were sold off by the apex bank at the primary market, N153.54 billion worth of the instruments were auctioned via Open Market Operations (OMO).

It was observed that stop rates for the auctioned fresh T-bills moved in different directions across the tenor buckets: 91-day stop rate was flattish at 10 percent while 182-day stop rate rose to 10.50 percent from 10.40 percent.

However, the 364-day stop rates fell to 11.22 percent from 11.30 percent.

Also, N153.54 billion worth of T-bills were sold via the secondary market and the outflows were offset by N473.40 billion in matured T-bills on Thursday.

Also, indicative of liquidity surplus was the Standing Deposit Facility (SDF) worth N431.43 billion which outweighed the Standing Lending Facility (SLF) worth N8.67 billion, according to Cowry Asset.

Hence, NIBOR for overnight funds rate moderated to 8.25 percent from 8.90 percent amid sustained financial liquidity ease.

However, NIBOR for other tenor buckets rose: 1 month, 3 months and 6 months tenor buckets rose w-o-w to, 12.06 percent from 11.31 percent, 12.70 percent from 12.44 percent and 14.52 percent from 13.80 percent respectively, suggesting unwillingness of banks to lend to one other.

Elsewhere, NITTY rose for most maturities tracked amid sustained bearish activity due to the continued sell-offs by foreign portfolio investors: yields on the 1 month, 6 months and 12 months maturities increased to 10.34 percent from 10.24 percent, 13.01 percent from 12.77 percent and 12.86 percent from 12.76 percent respectively.

However, yield on 3 months maturity fell to 11.35 percent from 11.36 percent.

https://www.businesspost.ng/2018/08/19/cbn-sells-n187b-t-bills-in-one-week-as-lending-rate-falls/

1 Like

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by MANNABBQGRILLS: 1:59am On Aug 19, 2018
We make hay while the sun shine.....

Invest now and reap later......
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by Sojebrand(m): 7:42am On Aug 19, 2018


While N33.38 billion worth of the bills were sold off by the apex bank at the primary market, N153.54 billion worth of the instruments were auctioned via Open Market Operations (OMO).

It was observed that stop rates for the auctioned fresh T-bills moved in different directions across the tenor buckets: 91-day stop rate was flattish at 10 percent while 182-day stop rate rose to 10.50 percent from 10.40 percent.

However, the 364-day stop rates fell to 11.22 percent from 11.30 percent.

Also, N153.54 billion worth of T-bills were sold via the secondary market and the outflows were offset by N473.40 billion in matured T-bills on Thursday.

Also, indicative of liquidity surplus was the Standing Deposit Facility (SDF) worth N431.43 billion which outweighed the Standing Lending Facility (SLF) worth N8.67 billion, according to Cowry Asset.


Elsewhere, NITTY rose for most maturiti
However, yield on 3 months maturity fell to 11.35 percent from 11.36 percent.
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by Weareone202: 7:43am On Aug 19, 2018
I hear
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by upower123(m): 7:44am On Aug 19, 2018
Hmmmmmmm
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by maxiuc(m): 7:44am On Aug 19, 2018
grin

1 Like

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by didfy: 7:45am On Aug 19, 2018
Please would T bill rate go higher than what it is now?

I mean higher that yearly 11% ?

1 Like 1 Share

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by jolyment: 7:46am On Aug 19, 2018
Investment in real business is better than T bills in terms of returns. Rice farming with 150naira can generate 1m naira in 3 months. My rice farming is doing well now and my prayer is that herdsmen will not attack the farm. No risk no money.

21 Likes

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by dicksonadams(m): 7:46am On Aug 19, 2018
This is good
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by khvnggift(m): 7:47am On Aug 19, 2018
Wah is d meaning of T bills

1 Like

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by Donald95(m): 7:48am On Aug 19, 2018
khvnggift:
Wah is d meaning of T bills

Another avenue through which national Assets will be sold and looted. Since most Nigerians can be easily confused with grammar and wouldn't question much about what they Know little about


jolyment:


You lack knowledge about the T bills,it is used by CBN to reduce or increase the volume of money in circulation.


Okay you that understands, How will this put food on your table this evening?

Since you've been hearing billions upon billions in the news, how much has entered your hand??

6 Likes 2 Shares

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by SarakiBukola: 7:49am On Aug 19, 2018
didfy:
Please would T bill rate go higher than what it is now?

I mean higher that yearly 11% ?

That's the first thing that came to my mind

Our economists should please come and translate the fiscal lingo
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by Kissingerright(f): 7:50am On Aug 19, 2018
sad
Happy Sunday good people please check this.
https://www.nairaland.com/4681624/please-depressed-soul
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by IamAlexander: 7:50am On Aug 19, 2018
khvnggift:
Wah is d meaning of T bills

Treasury bills

3 Likes

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by jolyment: 7:53am On Aug 19, 2018
khvnggift:
Wah is d meaning of T bills

Check google
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by ogaontop(m): 7:53am On Aug 19, 2018
We should be ashamed of ourselves

Very interesting topic about the economy and only a few are understanding this, you don't even have to be a banker, accountant or economist to know what is being expressed here

But if it's Linda Ikeji, Saraki vs Oshiomole vs Buhari, or BBnaija, we will all raise our heads and be shouting

Shalom!

18 Likes 3 Shares

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by jolyment: 7:54am On Aug 19, 2018
didfy:
Please would T bill rate go higher than what it is now?

I mean higher that yearly 11% ?

It depends on inflation rate.
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by IamAlexander: 7:55am On Aug 19, 2018
didfy:
Please would T bill rate go higher than what it is now?

I mean higher that yearly 11% ?

If American economy continue in the growth trajectory we saw for last quarter, then investors appetite to pull out funds from the emerging markets may be sustained. As such, countries like ours may be forced to increase interest rate on Tbills to reduce capital flight. Another factor is the election risk which has always scare investors away from the country and see headline inflation skyrocketing. Thus, CBN may decide To mitigate these risks by raising Tbills rate.

9 Likes 2 Shares

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by romenna: 7:55am On Aug 19, 2018
I rather continue with my 14% FD than this abeg.

P.S:
This is for those asking me to tell them the bank that can give them such ROI.
FD with most FIs is negotiable.
Your negotiating power is a factor of the value of ur proposed investment. 
Cheers

1 Like 2 Shares

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by pocohantas(f): 7:55am On Aug 19, 2018
khvnggift:
Wah is d meaning of T bills

Treasury bills. Debt instruments issued by the FG to raise funds.

2 Likes

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by dayo840(m): 7:59am On Aug 19, 2018
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Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by ernie4life(m): 7:59am On Aug 19, 2018
Tbills rate will most likely go up considering that post elections activities could increase liquidity and also Us sustained increase in interest rate would pull out Foreign investors sentiments from emerging markets so CBN will do everything to sustain foreign investors in the market.


In all of this the real sector will suffer if interest rates are increased, from decline in demand to non availability of credit which will have a multiplier effect on availability of jobs and increase in our already crime rate. Banks will shift there sentiments to government securities there by posting high returns and neglecting there primary objective of providing funding to our local manufacturing firms.

What do I even know after all we have "experts"
managing the affairs our country who are more interested in sustaining foreign investors sentiments than developing the real sector.

I forgot the stock market is already bleeding and further increase in rates will bleed it more.

Nobody is talking about policies that will create an enabling environment for the manufacturing sector to thrive. Nobody is concerned that we have unemployment rate at an all time high

7 Likes 1 Share

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by minasota(f): 8:01am On Aug 19, 2018
Only if BUHARI knows the meaning of T-Bills

1 Like

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by chimex38: 8:03am On Aug 19, 2018
Please house, if I bought TB at 13% and I didn't wait until maturity before selling in the secondary market at 11% .. would I make a profit from the low rate?
Considering I sold about 50 days to maturity for a dull tenor(364) days..
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by jolyment: 8:03am On Aug 19, 2018
Donald95:


Another avenue through which national Assets will be sold and looted. Since most Nigerians can be easily confused with grammar and wouldn't question much about what they Know little about

You lack knowledge about the T bills,it is used by CBN to reduce or increase the volume of money in circulation.

9 Likes

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by minasota(f): 8:04am On Aug 19, 2018
romenna:
I rather continue with my monthly 14% FD than this abeg.
Can I partner with you, invest in your FD?
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by jolyment: 8:04am On Aug 19, 2018
chimex38:
Please house, if I bought TB at 13% and I didn't wait until maturity before selling in the secondary market at 11% .. would I make a profit from the low rate?
Considering I sold about 50 days to maturity for a dull tenor(364) days..

You will still gain.
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by Teacher1776(m): 8:08am On Aug 19, 2018
Ootio
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by Dejijossy(m): 8:08am On Aug 19, 2018
But T-Bill is better if you have fund that you don't need for the moment

1 Like

Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by jolyment: 8:08am On Aug 19, 2018
romenna:
I rather continue with my monthly 14% FD than this abeg.

Tell me about this package.
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by romenna: 8:09am On Aug 19, 2018
minasota:
Can I partner with you, invest in your FD?
lol. . . Wats ur proposed partnership strategy?
Re: CBN Sells N187b T-bills In One Week As Lending Rate Falls by SocialJustice: 8:09am On Aug 19, 2018
romenna:
I rather continue with my monthly 14% FD than this abeg.
Which bank is paying 14% monthly?

6 Likes 1 Share

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