Treasury Bills In Nigeria - Investment (2234)

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Treasury Bills In Nigeria - Investment (2234) - Nairaland

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Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)

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Re: Treasury Bills In Nigeria by awesomeJ(m): 3:13pm On May 21

fucc12:
what's the max per individual
can I do a billion Naira

Yes.
Theoretically, you can bid as high as the CBN offers. About N509bn across the 3 tenors tomorrow.

It's guys like you that are really enjoying T-bills sha, so you'll just make N260m like that? Cool.

Re: Treasury Bills In Nigeria by Streetinvestor2: 4:25pm On May 21

I don't understand this fbn guys.i went today for primary market TB for tomorrow. They said it is late already. So when Is one supposed to go for it.The guy thr said that fbn only accept bids on Monday. Pls anyone that uses fbn for it.Is it how is done in fbn

Re: Treasury Bills In Nigeria by Itsrm(m): 5:22pm On May 21

Streetinvestor2:
I don't understand this fbn guys.i went today for primary market TB for tomorrow. They said it is late already. So when Is one supposed to go for it.The guy thr said that fbn only accept bids on Monday. Pls anyone that uses fbn for it.Is it how is done in fbn

Only on Monday is wrong but Monday is the deadline for any auction week.

1 Like

Re: Treasury Bills In Nigeria by Bluekapon(m): 5:54pm On May 21

I was in GTB today and was told it's from 50m upwards for primary market henceforth and was given the option of secondary market.
First Bank and Zenith told me 1m upwards. Plz, is this the case or was I misinformed?

Re: Treasury Bills In Nigeria by freeman67: 6:28pm On May 21

Bluekapon:
I was in GTB today and was told it's from 50m upwards for primary market henceforth and was given the option of secondary market.
First Bank and Zenith told me 1m upwards. Plz, is this the case or was I misinformed?

You were not misinformed perse. The official minimum amount for an individual to invest in TB and bid for him/her self through the primary market is 50M. However, banks do collate lower amounts to add to theirs. Meaning you can still invest in the primary market through banks but you will have to go with their own bid.

It just the branches you went to maybe. The last time I checked, you can subscribe Primary Market TB through GT and FBNQUEST from 100k except if it has changed now. The only time I tried zenith back then, I was told it's 1M but that also is still dependent on the branch.

1 Like

Re: Treasury Bills In Nigeria by Rizin: 12:14am On May 22

Bluekapon:
I was in GTB today and was told it's from 50m upwards for primary market henceforth and was given the option of secondary market.
First Bank and Zenith told me 1m upwards. Plz, is this the case or was I misinformed?

Re: Treasury Bills In Nigeria by Odunharry(m): 12:46am On May 22

Itsrm:

Only on Monday is wrong but Monday is the deadline for any auction week.

Depends on the institution. Some receive bids Tuesday

Re: Treasury Bills In Nigeria by Odunharry(m): 12:47am On May 22

Bluekapon:
I was in GTB today and was told it's from 50m upwards for primary market henceforth and was given the option of secondary market.
First Bank and Zenith told me 1m upwards. Plz, is this the case or was I misinformed?

You were not misinformed.

Re: Treasury Bills In Nigeria by Itsrm(m): 5:21am On May 22

Odunharry:

Depends on the institution. Some receive bids Tuesday

Yes. He was specific about fbn

Re: Treasury Bills In Nigeria by Amaa2019(m): 8:54am On May 22

davit:

I-invest is owned by Sterling Bank. Their platform is legit. Been using it for about 5 years now. I currently have TB portfolio with them running till next year.
It is good for TB at secondary market. Just note that their advertised rate is not truly what you get because they invest your interest alongside.

Kindly explain the bolded for us newbies, please?

Re: Treasury Bills In Nigeria by yesman(m): 9:17am On May 22

Good morning all,

I have a question regarding treasury bill rate at primary auction.

Cbn increased interest rate yesterday to 26.25%. Will this have any impact on the treasury bill rate at next auction?

1 Like

Re: Treasury Bills In Nigeria by Itsrm(m): 9:26am On May 22

yesman:
Good morning all,

I have a question regarding treasury bill rate at primary auction.

Cbn increased interest rate yesterday to 26.25%. Will this have any impact on the treasury bill rate at next auction?

The last increase to 24.75 did not. No one knows for sure what CBN will do. We have to wait till we see the result of today's auction.

Re: Treasury Bills In Nigeria by fucc12: 11:54am On May 22

awesomeJ:

Yes.
Theoretically, you can bid as high as the CBN offers. About N509bn across the 3 tenors tomorrow.

It's guys like you that are really enjoying T-bills sha, so you'll just make N260m like that? Cool.

Lol
I no va get the money yet, but once i see $600k im throwing it in there

Re: Treasury Bills In Nigeria by awesomeJ(m): 12:01pm On May 22

fucc12:

Lol
I no va get the money yet, but once i see $600k im throwing it in there

I pray you get it very soon.

Re: Treasury Bills In Nigeria by zamirikpo(m): 12:12pm On May 22

Amen...

awesomeJ:

I pray you get it very soon.

1 Like

Re: Treasury Bills In Nigeria by Elui2(m): 7:25pm On May 22

Itsrm:

The last increase to 24.75 did not. No one knows for sure what CBN will do. We have to wait till we see the result of today's auction.

Does it mean people invest without knowing the rate for for a particular auction?

Pardon me I am new here

Re: Treasury Bills In Nigeria by awesomeJ(m): 7:44pm On May 22

Rates changed today.

6 Likes

Re: Treasury Bills In Nigeria by Itsrm(m): 8:03pm On May 22

Elui2:

Does it mean people invest without knowing the rate for for a particular auction?

Pardon me I am new here

Exactly. You can only speculate based on previous auction. That's why some people miss out when they submit bids above the CBN stop rate.

Re: Treasury Bills In Nigeria by Itsrm(m): 8:06pm On May 22

awesomeJ:
Rates changed today.

Rubbish. If the idea of increasing MPR is to attract FPIs, of what use will it be if they won't increase rates.

Re: Treasury Bills In Nigeria by farydah: 9:04pm On May 22

Pls if I bought secondary market tbills at 15.5% in February, assuming I’m selling it now, like how much will it go for?

Re: Treasury Bills In Nigeria by tabithababy(f): 9:28pm On May 22

Please for those that bidded with stanbic, does it mean that it was not successful

Re: Treasury Bills In Nigeria by Odunharry(m): 10:45pm On May 22

farydah:
Pls if I bought secondary market tbills at 15.5% in February, assuming I’m selling it now, like how much will it go for?

Your bank/investment firm will do the calculation.

1 Like

Re: Treasury Bills In Nigeria by TheAlchemist: 5:08am On May 23

Please is fairmoney 26% inrerest pa on fixed savings more attractive than investing in treasury Bill's or bond?

Re: Treasury Bills In Nigeria by Itsrm(m): 6:16am On May 23

TheAlchemist:
Please is fairmoney 26% inrerest pa on fixed savings more attractive than investing in treasury Bill's or bond?

FGN is giving you roughly 25% net of charges if you reinvest your interest.

Even if you take the interest upfront which you can't do with fairmoney, you have the opportunity to use it in advance in this high inflationary period.

I'm not seeing any attraction with fairmoney. The only reason anyone will put money there in my view is ignorance of NTBs.

3 Likes

Re: Treasury Bills In Nigeria by TheAlchemist: 7:37am On May 23

Itsrm:

FGN is giving you roughly 25% net of charges if you reinvest your interest.

Even if you take the interest upfront which you can't do with fairmoney, you have the opportunity to use it in advance in this high inflationary period.

I'm not seeing any attraction with fairmoney. The only reason anyone will put money there in my view is ignorance of NTBs.

Point of correction, you can get your interest upfront not only with fairmoney, but with similar banks such as renmoney.. Given that you can get your your interest upfront does it make fairmoney more attractive and if it does not.... what interest rate on davings deposit will make you decide to dump treasury bill/bond investments.

Also I invested in stanbic ibtc money market fund and I did not get my interest upfront or am I missing something.

1 Like

Re: Treasury Bills In Nigeria by teejay5(f): 8:50am On May 23

Why did u say so, cause I bided with Dem too

tabithababy:
Please for those that bidded with stanbic, does it mean that it was not successful

Re: Treasury Bills In Nigeria by Itsrm(m): 8:54am On May 23

TheAlchemist:

Point of correction, you can get your interest upfront not only with fairmoney, but with similar banks such as renmoney.. Given that you can get your your interest upfront does it make fairmoney more attractive and if it does not.... what interest rate on davings deposit will make you decide to dump treasury bill/bond investments.

Also I invested in stanbic ibtc money market fund and I did not get my interest upfront or am I missing something.

Are you sure about that? If true then it certainly makes fairmoney more attractive but I won't do it. The risk/reward is not worth it in my view.

You don't get interest upfront with mutual funds.

1 Like

Re: Treasury Bills In Nigeria by PNomsule: 9:40am On May 23

awesomeJ:

Yes.
Theoretically, you can bid as high as the CBN offers. About N509bn across the 3 tenors tomorrow.

It's guys like you that are really enjoying T-bills sha, so you'll just make N260m like that? Cool.

N260m in ROI, I am guessing that's 26% p/a yea?

And then again, how much is the borrowing rate p/a today with the banks?

Re: Treasury Bills In Nigeria by awesomeJ(m): 10:32am On May 23

farydah:
Pls if I bought secondary market tbills at 15.5% in February, assuming I’m selling it now, like how much will it go for?

Depends on the tenor.
If it's around 91 days, they'll be expecting to discount your bills at say 19%.
Basically, the going rate plus 1-2% markup.

You may lose part of your principal of you haven't held for long.

If you want more specific analysis, give more info about the investment, we'll run the numbers for you, then you can make an informed decision

3 Likes

Re: Treasury Bills In Nigeria by awesomeJ(m): 10:35am On May 23

TheAlchemist:
Please is fairmoney 26% inrerest pa on fixed savings more attractive than investing in treasury Bill's or bond?

First 26% from Fair money is effectively 23.4% netting off WHT.

2. NTB has sovereign guaranty, while Fair Money's solvency is not as guaranteed.

1 Like

Re: Treasury Bills In Nigeria by awesomeJ(m): 10:38am On May 23

TheAlchemist:

Point of correction, you can get your interest upfront not only with fairmoney, but with similar banks such as renmoney.. Given that you can get your your interest upfront does it make fairmoney more attractive and if it does not.... what interest rate on davings deposit will make you decide to dump treasury bill/bond investments.

Also I invested in stanbic ibtc money market fund and I did not get my interest upfront or am I missing something.

You need to verify what the actual yield is. You make it sound like they offer 26% interest and pay the interest upfront. I doubt that being the case. It's more likely that by electing to get your interest upfront, the rate will be lower than 26%.

2 Likes

Re: Treasury Bills In Nigeria by awesomeJ(m): 10:41am On May 23

PNomsule:

N260m in ROI, I am guessing that's 26% p/a yea?

And then again, how much is the borrowing rate p/a today with the banks?

Yes. One year papers have c. 26% yields on them.

Prime lending rate is typically MPR+4%, but only blue chips get those.

For the regular Joe, it could be as high as MPR +14%.

So 30.25 - 40.25%

1 Like

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