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Nairaland Forum / Nairaland / General / Business / CBN Crashes Treasury Bills Rates To Single Digits (33040 Views)
CBN Suspends COVID-Linked Loan Relief And Raises Interest Rates To 9% / Banks Raise Lending Rates To 30 Per Cent / CBN To Sell N252bn Treasury Bills Next Week (2) (3) (4)
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Re: CBN Crashes Treasury Bills Rates To Single Digits by Awoo88: 3:32pm On Nov 14, 2019 |
ntyce:I did not take economics 101. Can you kindly in a very shot sentence tell me.why Tbill should pay lowest interest and why this a good news |
Re: CBN Crashes Treasury Bills Rates To Single Digits by Legendguru: 3:43pm On Nov 14, 2019 |
Hmmm |
Re: CBN Crashes Treasury Bills Rates To Single Digits by ntyce(m): 4:01pm On Nov 14, 2019 |
Awoo88: Logic says the right the interest, the higher the risk involved. Tbills is the safest form of investment, hence it's rate should be lower.... The lower rate will also encourage investment in the real sector (agric and manufacturing). I know of individuals who shut down his business, invested his funds in Tbills, was earning 800k every quarter. If the trend continues, most people will close shop, sit at home to earn interests leading to more job loses. Also, some commercial banks were diverting their funds to OMO and Tbills, collecting interest and declaring profit thus neglecting lending to businesses. Few months back, CBN tasked banks to give out 65% of their total deposit as loans, failure to do so will be met with sanction. Banks are now being forced to give out loans. I'm sure th CBN will reduce the MPR benchmark in the next few weeks since the cost of funds will also drop 3 Likes 1 Share |
Re: CBN Crashes Treasury Bills Rates To Single Digits by pocohantas(f): 4:17pm On Nov 14, 2019 |
DenreleDave: Hahaha. I found your comment funny and sincere. I believe you have gotten the answers you seek. I also believe you know Tbills are government bonds and safest investment. Has a tenor of 91,182 and 364days. Now they have crashed the rates, it is good news for government. They can source funds from US at a cheaper rate. Bad news for masses. It would put it almost at par with fixed deposit rates of some commercial banks. Which goes against the reason everyone jumped on it. Anyway, it isn't so bad as people won't see much need for keeping funds idle. They might seek to invest in other sectors and businesses. 1 Like 1 Share |
Re: CBN Crashes Treasury Bills Rates To Single Digits by abbiboy: 4:27pm On Nov 14, 2019 |
Flexherbal:Flexherb i need ur herb.my bedmoon will start this weekend wit lamborghini help me out to satisfy her.SOS frm a broda! |
Re: CBN Crashes Treasury Bills Rates To Single Digits by Nobody: 4:27pm On Nov 14, 2019 |
alizma:Thanks 1 Like |
Re: CBN Crashes Treasury Bills Rates To Single Digits by prof2007: 5:01pm On Nov 14, 2019 |
studentofTruth:Let me assist. Below is a list of businesses that require low starting capital and can give returns well over 100% per year. Negative thinking has blinded many Nigerians to opportunities staring us in the face. My word of advice is to think positively and always look for a remedy rather than complain. God bless you! 1. Quail Bird Farming 2. Catering Services (Indoor and Outdoor) 3. Mobile food Vending 4. Computer Training Centre 5. Computer Repair and Accessories Sales. 6. Mobile Phone Sales and Repairs 7. Rental Services 8. Food Processing 9. Cement Sales and Distribution 10. Frozen food Sales 11. Pure and Bottled Water Production 12. Livestock Farming 13. Poultry Farming 14. Used Car Sales 15. Social Media Marketing 16. Blogging 17. Freelance Writing 18. Mini-Importation 19. Exportation 20. Cooking Gas Sales 21. Recruitment Agency 22. Uniform Making factory 23. Ready-to-wear clothes making 24. Haulage and Logistics 25. Transportation 26. Online Marketing 27. Bulk SMS Services 28. Daycare Centre/Crèche 29. Small Scale Manufacturing 30. Scrap metal sales 31. Waste Management Services 32. Pet Breeding 33. Animal feed production 34. Ethanol Production 35. Software and games development 36. Security gadget sales 37. Home/Office Cleaning Services 38. Recharge Card Printing and Sales 39. Sports Viewing Centers 40. Massage Parlour 41. Building Blocks Production. 42. Art Gallery 43. Ice Cream Production 44. Jewelry making 45. Travel agency 46. Natural Fruit Juice Production 47. Photography and Videography 48. Magazine Publication 49. Monogramming and Branding Services 50. Weight Loss Consultancy 51. Biscuit Production 52. Printing and Book Production 53. Private Library Services 54. Hairdressing Salon 55. Day Spa 56. Nail Studio (Manicure and Pedicure) 57. Selling Fruits 58. Selling honey 59. Affiliate marketing 60. Personal Fitness Instructor 61. Business broker 62. Car Wash and Detailing Services 63. Dating Service 64. Make-up Artist 65. Video game Center 66. Pharmaceutical company 67. Stock Photography 68. Art brokerage 69. Resume writing 70. Online Vitamin/Health Food Store 71. Virtual assistant 72. Pest control 73. Car Rentals 74. Nanny agency 75. Mail-order business 76. Ice block production 77. Night Clubs and Restaurants 78. Solar energy installation and equipment sales 79. Antique Furniture Sales 80. Laundry Service 81. Virtual Call Center 82. SEO Consultant 83. Gift Baskets 84. Disc Jockey (DJ) 85. Personal Shopper & Errand Service 86. Wine Production 87. Sports Collectible Shop 88. Funeral Arrangement Company 89. Oil Palm Plantation 90. Internet Radio Station 91. Online Clothing Store 92. Modeling and Event Ushering 93. Marketer/PR Agent 94. Fashion Stylist 95. Automobile Repairs and Fleet Management Services 96. Facility Management Services 97. Appliance Repair Service 98. House Painting 99. Alternative Power Supply 100. Security Gadget Sales and Installations. 2 Likes 3 Shares |
Re: CBN Crashes Treasury Bills Rates To Single Digits by Fuckgovt: 5:21pm On Nov 14, 2019 |
ntyce:so because all other investments have gone low govt must force tbills low too. Then no problem, we will all stop investing in it. Then let's see how they will manage. |
Re: CBN Crashes Treasury Bills Rates To Single Digits by k2money(m): 5:21pm On Nov 14, 2019 |
This is a good news, is even lower than this in civilize country because it will make people to invest their money in setting up business instead of keeping it. The funniest thing is that those in government were the ones putting their money in TB that was why they make it high. I pray it even go down as low as 2 or 3% |
Re: CBN Crashes Treasury Bills Rates To Single Digits by salt1: 5:31pm On Nov 14, 2019 |
somehow: To the best of my knowledge, yes. Unless the investor left instructions for it to be paid at maturity 1 Like |
Re: CBN Crashes Treasury Bills Rates To Single Digits by ogawisdom(m): 5:37pm On Nov 14, 2019 |
Very good it should be reduced to 1% ppl should invest in the real sector n not just borrowing to FG |
Re: CBN Crashes Treasury Bills Rates To Single Digits by nextstep(m): 5:50pm On Nov 14, 2019 |
VicThory: k2money: Agreed. Fundamentally, tbills track inflation. So it's good because it indicates inflation is coming down, which is good news for everybody (consumers and investors). Ideally, it should hover around 3%. Investors: since tbills track inflation, it really is just a way to preserve your purchasing power. The rate itself doesn't matter, but it might cause people to seek better returns by starting business or investing in stocks (instead of parking their money). Consumers: well, it means the costs of goods shouldn't rise as dramatically over the next 12 months. Shouldn't, but this being Nigeria... Businesses: the cost of borrowing should also go down because all these interest rates move in tandem - albeit at different offsets to the base inflation rate. In addition, CBN has EgunMogaji2: Yes, for retired folks like EgunMogaji2, it can be a mixed bag... ideally his retirement income from tbills should be indexed to inflation, but we know prices of goods and services always ratchet up in Nigeria... though he should still benefit from the slower pace of inflation. In theory. 1 Like |
Re: CBN Crashes Treasury Bills Rates To Single Digits by henryhemon(m): 5:56pm On Nov 14, 2019 |
Flexherbal: It's not worth it. |
Re: CBN Crashes Treasury Bills Rates To Single Digits by DenreleDave(m): 6:18pm On Nov 14, 2019 |
pocohantas: I fully comprehended all that u av said.. Thanks dear |
Re: CBN Crashes Treasury Bills Rates To Single Digits by DenreleDave(m): 6:20pm On Nov 14, 2019 |
Lukmanraji:Haba next month, it's not likely... Can we link.. I wish to link with other banking and finance group. I'm from Bayero University Kano but based in Lagos... Can u help me with that |
Re: CBN Crashes Treasury Bills Rates To Single Digits by Flexherbal(m): 7:00pm On Nov 14, 2019 |
abbiboy: At your service, Sir! 1 Like |
Re: CBN Crashes Treasury Bills Rates To Single Digits by grandstar(m): 7:05pm On Nov 14, 2019 |
If inflation rate is in double digits and treasury bill rates have been crashed to single units, that means rates have become negative. That isn't right. That means means monetary policy has become looser. But why? First and simple theory is that government wants to crash rates in order to reduce the cost of borrowed to help stimulate the economy. Another reason could be that because this government has borrowed so much, lower rates will reduce the burden of servicing the huge debt mountain. A looser monetary is very risky as it is inflationary. It can also lead to a weakening of the Naira, a weakening the president will reject, a rejection that will cause serious damage to the economy as it did on 2015-2017 |
Re: CBN Crashes Treasury Bills Rates To Single Digits by blastac: 7:42pm On Nov 14, 2019 |
You misunderstood me... I graduated from banking and finance.. I just felt like asking,crossing my fingers it might be my school( that feeling of oh this person is doing my course and everything) sorry DenreleDave: |
Re: CBN Crashes Treasury Bills Rates To Single Digits by Lukmanraji(m): 7:52pm On Nov 14, 2019 |
DenreleDave: mail me Lukmanraji@gmail.com |
Re: CBN Crashes Treasury Bills Rates To Single Digits by DenreleDave(m): 7:53pm On Nov 14, 2019 |
blastac:I'm sorry for misunderstanding you Bro.. I'm sorry |
Re: CBN Crashes Treasury Bills Rates To Single Digits by DenreleDave(m): 7:54pm On Nov 14, 2019 |
Lukmanraji: Just sent u a mail |
Re: CBN Crashes Treasury Bills Rates To Single Digits by blastac: 8:02pm On Nov 14, 2019 |
No p... My lecturers wrote abt treasury bills but never thought them ... Even if they did I know I no listen..a friend explained it to me a day he bought his.. so yes you can't learn everything in class.. DenreleDave: |
Re: CBN Crashes Treasury Bills Rates To Single Digits by Mydazz(m): 8:10pm On Nov 14, 2019 |
BrainSanitizer: Really,...... must everything go corporate and the people continue to get ripped off. I hope that doesn't work oh cossie I'm seriously considering it as passive investment |
Re: CBN Crashes Treasury Bills Rates To Single Digits by abbiboy: 9:38pm On Nov 14, 2019 |
Flexherbal:How can i get the herbs sir!! |
Re: CBN Crashes Treasury Bills Rates To Single Digits by Nobody: 9:50pm On Nov 14, 2019 |
grandstar: So, inflation should. be tackled at the expense of employment and growth |
Re: CBN Crashes Treasury Bills Rates To Single Digits by grandstar(m): 10:17pm On Nov 14, 2019 |
walexy100: I too some extent understand where you're coming from. However, the upside is higher levels of inflation which affects the poor the hardest. That means what you're giving with one hand, you are taking with the other. Central Banks hate inflation and this policy is inflationary. What government needs to do is to first reduce inflation to single digits- let's say 5 to 6%- and then bring treasury bill yields down as well. The lending rate must always be higher than the inflationary rate or else you will lead to overborrowing and the stoking of inflation which inevitably has to be brought down |
Re: CBN Crashes Treasury Bills Rates To Single Digits by Flexherbal(m): 5:32am On Nov 15, 2019 |
abbiboy: My contact is on my signature. |
Re: CBN Crashes Treasury Bills Rates To Single Digits by segzie2012: 8:55am On Nov 16, 2019 |
MohAbdullah:________________ Let me refresh your memory,..... What happens when Government securities include treasury bonds, notes, and bills are put up for sale or govt buys securities? |
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