feelamong: The CBN stop rates for the Tbills auction yeaterday were as follows:

91 DAYS ------14.5%

182 DAYS ------15.30%

364 DAYS ------15.38%

Good one for investors!!!

webstradamus:

Damn!!! Really didn't see this coming. Lost by 0.06% two weeks ago and due to fear of losing again, I ended up bidding way too low (14.75%)

Seun:
Regardless of what you bid, every winning bidder should get the same rate at the end of the auction. Am I wrong about this?

feelamong:

Clearly you are wrong on this! You will only be availed at the rate you bidded for! Pronto!!

webstradamus:

Well said! Unfortunately, you only get what you bid provided it doesn't exceed the yield rate. And that's what makes bidding kinda difficult. Imagine me bidding 15% last week and then 14.94% ended up being the stop rate. I got scared this time and bid 14.75% only for it to yield 15.30%. Am so mad at myself now

coolguyz: expectation ranges as follows -

91 days: 14.00% - 14.65%
182 days: 14.95% - 15.55%

**please note these are expectations based on the market reading and not CBN stop rates!

coolguyz: There will be primary auction for Treasury Bills on Wednesday, 22-August-12 with details as follows;

91 days tenor with maturity of 22-Nov-12, amount on offer is N30.647 billion
182 days tenor with maturity date of 21-Feb-13, amount on offer is N40.00 billion


The 91-day and 182-day bills are trading in the secondary market at 14.40% (offer) and 15.25%(offer) respectively.

Yields had gone up across all maturities in the past week due to a drop in the level of liquidity and an increment in the sales of bills by counterparties who need to raise funds to meet their obligations. However, there was a marginal drop over the past two days as there was a decrease in demand for bills. There is also the expectation of the FAAC inflow after the holidays. It is expected that yields at this auction might hover around the stop rates of the previous one

webstradamus:

How does this secondary market work and how can one participate?

webstradamus:

How does this secondary market work and how can one participate?

coolguyz:

in addition to @feelamong's statement, note that you can also buy treasury bills on the secondary market. You need not wait for primary auctions or OMO auctions to invest in treasury bills. The secondary market is like you buying an already issued maturity which is being traded. Registered Primary Market Dealers (banks and discount houses) atimes sell from their existing portfolio to investors and can take instructions to buy specific maturities from the market on your behalf.

Will be willing to answer further enquiries

@feelamong. . . will send you my details. keep up the good work!

feelamong:

A lot of people have been sending mails to me on Tbills asking for where they could actually invest as low as N100K - N500K. Can You advise on any Discount House that accepts as low as that. My bankers do not accept below N1Million.

feelamong:

Officially you can invest as little as N1000. But because of the paper work involved and for the fact that the fees u pay to them is very low, most banks and discount houses insist on a min of 100k to N1M.

If you are interested send me a mail to feelamong@gmail.com ..I will introduce you to a friend in a discount house.

Dada-Stephen:


Chiarman abeg,
I've got interest in this Tbills stuff, but u guys should pls help novices like me.
Make it simple:
What r Tbills? How much is d minimum to maximum investment rate and what is the profit or interest like?
Wher can I get it?
Thanks

feelamong: CBN STOP RATES!!

91Days ------14%

182 days ------15.08%

Rates dropped but still not bad!

feelamong:

Broda...just take ur time and read thru the thread..wont be nice sounding like a broken record to others who have been following the thread.

In summary Tbills are discounted Debt Instruments issued by the CBN by the order of FGN. It means you are borrowing money to the FGN at an interest rate (Discount Rate). The good thing here is that you can actually collect your interest upfront and it is Risk Free and Tax free. Moreover you actually get far higher rates that you will ordinarily get from your investments in Fixed deposits.

The minimum amount where i invest is N1M. Just talk to your bankers. If they cannot help then you can give me a shout to introduce you to my account officer.

Shalom!!

Americas_man:

The rate I got from first bank is 12.02% 91days. I wonder why? Please poster, How can I get a good rates. These banks keeps giving me very bad rates. Do you think the rates re from the secondary market?

Ojix85:

@Feelamong:

Pls introduce me to your account manager. Need some help here.

Ojix85: Hi guys.

This will be my second time i will be trying to invest in Treasury Bills and GTBank keeps messing me up.

I called them yesterday when i noticed that my account has not been debited. The investment peeps said that will be done either yesterday or today, but i really doubt.

I have no choice but to pull my funds from this silly bank.

feelamong:

Well, I think you should wait and see. Usually my account is debited on Fridays. but then i hope you did not bid above the CBN stop Rates!