₦airaland Forum

Uchefrancis16:
If you are new to TBills, you can learn a lot from this thread. However, if you find it tedious to scroll through the pages, gathering the information you need about it bit by bit, from page to page before investing, you might consider reading this article I've put together. Based on what I've learnt from this wonderful thread over the long stay.

It will help you understand TBills at a glimpse and help you get all the info you need to start investing in one place.

http://www.techdavids.com/2017/04/how-to-invest-in-nigerian-treasury-bills.html

Many thanks to Uchefrancis16 for the attached article on Nigerian Treasury bills. Quite informative especially for someone who is new to the market, and considering wether to invest.
I similarly share the writer's opinion as per my personal experience, that as of now (as things may change later), Stanbic bank seems to be the best in the market, and Zenith bank is not one of the good ones when it comes to Treasury bills. Zenith bank is of the habit of offering much lower interest rates to their customers, (and Stanbic the highest interest rates) from the CBN stop/marginal rates.

Sylverly:
That means one can secure Tbill anytime. Not waiting fprban auction date.?

Yes. But in the secondary Treasury bills market, and depending on what's available. Sometimes you can even get a better deal, in terms of interest rate if you are after a relatively shorter tenor.

MyMail2D:
Hello,
I am getting tired of trading with the Banks as most of their staffs don't know much about TB or are blocking my requests.
Pls does any one know much about Afrinvest invest securities.
They say they are dealing primary & secondary markets.

Any info on their capabilities

Hi MyMail2D, unless you don't meet the minimum requirement to apply for Treasury bills from your bank, then I will understand why you feel helpless and sound frustrated. But if you meet the minimum requirements, then I am sorry to say, that it is your fault you are being messed around, as you need to be assertive with these self centred bankers. It is no longer news that most bankers will like to frustrate you in doing treasury bills, for their personal and banks' selfish interests. I had to "shout down" one of my account officers many years back, when she told me I was better off doing fixed deposit, at 4% for 30 days instead of going for Treasury bills then at 9% for 364 day tenor. Of course all the interest rates were per annum.
Unfortunately I have no experience dealing with Afrinvest, and unable to advise you about the company. May be other members can provide advice on that.
You need to take control of your finances, and move your funds to where your interests and wish would be adequately catered for.

unite4real:
Inflation may be reducing but if there is shortage in Naira and inter bank rate goes up, rates will be looking North. CBN is pumping in more dollars that have less naira chasing it, so the demand for naira has gone up. This has lead to the increase in rates.

Unite4real is perfectly spot-on. Especially with recent interbank lending rate that is inching up from time to time, partly due to CBN mopping up naira with dollars' sale, customers are actually requesting a much higher rate from CBN for Treasury bills, despite the reported drop in inflation rate.

amjustme2:
This shows the rates are likely going higher.

But reports shows inflation is reducing.

From the same This day article, I guess the rate inched slightly upwards, because a lot of the banks and big time customers (with over 50M) requested for much higher interest rates than the stop rates, as the auction was under allotted. I guess CBN was reluctant to pay more than the above stop rates, hence the under allotment despite over subscription for the 364 day tenor.

Results of auction (marginal rates) on 19 April 2017 as noted in an article by This day newspaper. No update yet on CBN website.

91 days - 13.6%

182 days - 17.4%

364 days - 18.9%

Members be aware that the above rates are yet to be independently verified.

dejiotus:
I wonder why it is so quiet today; on auction week. Any news please from anyone that submitted application to Stanbic bank for the auction this week.

Zenith debited a friend earlier this evening; 17.25% for 364 days. It is difficult to appraise the rate however without knowing the cbn stop rates.
News about the stop rates will be kindly appreciated please

I have just been debited by Stanbic, and the offered interest rate is roughly 18.54% for 364 days. It seems the rate for the 364 day tenor remains steady at over 18%.

I wonder why it is so quiet today; on auction week. Any news please from anyone that submitted application to Stanbic bank for the auction this week.

Zenith debited a friend earlier this evening; 17.25% for 364 days. It is difficult to appraise the rate however without knowing the cbn stop rates.
News about the stop rates will be kindly appreciated please

unite4real:
No bro. Auction is on 19th not 20th. Auctions are usually held on wednesdays while the next day, Thursdays are settlement days.
In view of this, the auction already took place yesterday. Today is settlement day.

Settlement day for FGN treasury bills is T + 1, while FGN Bonds usually T + 2

Thanks to Unite4real for the clarification above. Wednesday has always been the day quoted to me as the auction day, by my account officers.
But guys and ladies in the house, why is there no information on the stop rates? Or is there blood on the dance floor?; and is the era of the relatively high TB rates coming to an end? I hope not.
I remember the TBs I did around this time last year were for about 8.5%/ 9.5% (364 day tenor)

Can gurus in the house kindly provide the stop rates for the auction this week.
The info is unusually late to arrive in the forum this time! Where is everybody? May be people are still enjoying the Easter break.

Can Feelamong and other gurus in the house kindly harass their account officers for the figures.
Many thanks.

ihedioramma:
I dont understand you sir, one annum is it not 91 days ? . what am asking is that the total profit of #500,000 @13% for 91 days ? .

Hi. I guess you are much clearer now by the detailed illustration, kindly provided above by NL1960.
The 13% offered on 91 day tenor is per annum (for 1 year, i.e 365 days). Technically the interest paid will be roughly 3.25% over the 91 days period.(13% divided by 4, as we have four "91days" in a year.

ihedioramma:
91 days with #500,000 @13% how much will it be? .

Roughly N16,250 less the usual deductions (commission, custodian fees etc).
Note that the 13% is per annum, and NOT for 91 days. This is a common error that I have noticed by some of our forum members, when the interest is being calculated.

I will be very grateful if any of our members with the stop rates for the auction yesterday, can provide the house with the rates. Many thanks

Bennycollins:
Good am guys.
Please I need guidance from someone with FBN Tbills experience. My investment is supposed to have matured yesterday and the impression I had from this forum was that my alert would wake me up on the date. And until now am still expecting my money. Do I need to approach the bank b4 they do the right thing? And what, in case they act funny?
Thanks as I await informed responses.

Matured Treasury bills are usually paid back to customers' accounts before the end of business on Thursday after the auction, and not on Wednesdays.
Dear Bennycollins, be reassured your account will be credited unfailingly before the end of business today if the TB you invested in, is definitely the genuine Nigerian treasury bills market. And you do not need to contact your bank before your investment is returned back to your account on maturity.

zamirikpo:
Auctions would be held on the 20th not 19th, but like u said he is already late because his application should be on their table latest today before close of work.

Thanks for the correction. The impression I have from my account officer is that bids are submitted to CBN by banks on a Wednesday, but the deals are effected on a Thursday. Ideally it is better to submit the application latest on Monday preceding the auction day, and to followup the following day (Tuesday) to be sure your application has been submitted to the head office; this is particularly important if you have an unreliable account officer.

agoro2u:
I just left FBN One branch in Port Harcourt now, the lady I met, Stephanie (or something sound like that) told me that she don't know the interest rate on Tbill & the auction both Secondary & primary is not on sale cos the did 1 last week.
I told her that I heard that 1 will be out today but she said no. she was trying to push me to fixed deposit which I resist.


is it that she is not experience abt Tbill or she is using market strategy for me cos she makes me confused

It is either she is very ignorant of the Treasury bills market. Or she is using market strategy for you as you suggested. Unfortunately it is now too late for you to position yourself for the auction that is due tomorrow Wednesday 19 April, and to be effected on customers' accounts on Thursday 20 April/ Friday 21 April depending on your bank.
Attached is the TB time table that was posted earlier on the trend.

toast224:
My upfront interest has just been credited by firstbank and by my calculation, 17.5% for 72days. secondary market is making sense.

Yes. It is a win-win scenario for both the customers and the banks, if the tenor required is much lower than 364 days. The fewer the number of days, the better. My guess is that what was sold to you is the remaining days due to lapse on a previously bought TB with a much longer tenor, and maybe a much higher interest rate. Obviously the bank offloaded the TB at a much higher rate (17.5%) than the average 13% for a 91 day tenor, in order to buy another TB for 364 days, since no one can be certain CBN will still be offering the ongoing relative high interest rate in 72 days' time.
NB. It could also be a wise customer, who is repositioning himself for another 364 day tenor.

Take home information- You are better off to buy in the secondary market if you are after a short tenor like a 91 day tenor; but to apply via your bank and choose the bank rate if you want to lock-in the prevailing high rate for a much long tenor of 364 days.

feelaaG:
Dear Mr Feelamong,

Please see below the outcome of the Treasury Bills Primary Auction which held on April 05, 2017:


PRIMARY MARKET AUCTION RESULT


TENOR (DAYS) 91 182 364

STOP RATE 13.5511% 17.2121% 18.7411%

Many thanks to FeelaaG for the above CBN stop rates. Members should kindly update the house on the different rates the banks are offering to their customers. Some banks have consistently been offering the same rate on the 364 day tenors for the last 3 auctions despite the gradual increase in rate from 18.55% on 15 March, to 18.69% on 22 March and now 18.74% on 5 April 2017

Lalaska:
Result of yesterday's auction below

91 days - 13.55%

182 days - 17.2%

364 days - 18.69%

Notice the increase in rate for 364 days. Now waiting to see what the banks offered their customers. All the best to those of us that sent in their bids.

Above were the stop rates kindly provided, for the auction on 22 March 2017, courtesy of Lalaska .
Can Lalaska and other gurus in the house kindly provide the stop rates for the auction yesterday; 5 April 2017. Knowing the CBN stop rates allow members to critically appraise how mean or otherwise the banks are, with the rates the banks are offering their customers.

dandollar1:
When buying from the secondary market,do they tell you the rate so you could decide if you want it or not?

Yes. And you need to move fast if you are happy with the rate

easyflow:
I was given 16.2% for 108 days. I don't know wether to accept or reject it

It depends on the tenor you have in mind. 16.2% is very good if you are planning to go for the 91 day tenor this week. You will not get this even in the primary auction if you have more than 50M to invest.
I guess what you are offered is the remaining time due to lapse on either the 182 or 364 day tenors that was bought previously at a much higher interest rate.

There is over 166 billion naira on offer this week for the 364 day tenor. I predict the rate will be higher this week for the whole amount to be fully subscribed to

just2endowed:
what rate where banks given to successful bidders in last 2 weeks bidding

I got 18.43% from Stanbic bank on 23 March 2017, for the last auction on 22 March 2017

Uchefrancis16:
Ive been out of TBills for a while and learnt there has been some new policies in TBills via the recent posts on this thread.

Pls can any one help me with it? Or the exact page on this thread where its discussed so I can go through it and be informed before investing again.

I've read lots of pages but only heard about the rule but can't lay my hands on it.

Pls help a brother thanks!

Welcome back Uche. Customers like us, who were allowed before to bid directly in the primary auction via our banks ( by stating our bidding rates), are NO longer allowed unless you are bidding with more than 50M. The only option now is to go with the bank rate, and be at the mercy of what the banks decide to give you. Stanbic offered 18.43% for the 364 day tenor at the last auction on 22 March, as compared to 18% from GT bank

Reconciled:
Hi Deji,

Please would you recommend your account officer to me as I'm interested in opening a Stanbic account so I can invest in TBills. I have tried a number of times to reach my GTBank account officer to no avail, even called customer service and emailed. As such I've been unable to buy TBills.

She works in Stanbic UI branch in Ibadan. Is this an option for you? If yes, I can contact her, to make her aware you are keen to open an account with her branch.

sherif4owo:
do you mean you submitted a bid request without a rate or filled a form for the amount without stating any rate? I just opened a stanbic account too, I will have to bid through them next week.

customer care seems to know nothing about Tbills here.

There's an application form you need to fill. And of course you need to choose the bank's bidding rate if you are applying for less than 50M.
It is very important to have a very good account officer, who is quite knowledgeable about the Treasury bills market. My account officer is actually in the process of buying another treasury bills in the secondary market with the proceed of the upfront interest I got yesterday at 18.43%. I was offered 185 days for 17% or 80 days for 16%.I picked 17% for 185 days

torres2:
I need clarification pls NTB auctions is 2weeks interval why was done on 15th and 22nd of March respectively. And who has the schedule for that of April?

Thanks in anticipation.

I guess it has to do with the previous festive Easter season.

dejiotus:
You are very much welcome. Yawa dey for town o. No news yet from both my account officers in Stanbic and GT banks regarding the rates customers will be offered for the 364 day tenor

Gurus in the house should kindly update the house about the rates offered by banks for customers that submitted application for the auction on 22 March. I am particularly keen on the rates from GT, as I am still waiting for the rate I will be offered for the 364 day tenor

gagzee:
wait o, dnt knw how this treasury thing works bt why not go for d 90/180 days twice, instead of d 364days...because even 18% is a terribly small returns on investment for a whole year?!! haba

For an investment that is almost 100% risk free, stress free and for an idle cash, 18% is very good return on investment. Much better than fixed deposit or monthly interest on my saving's account.
I hope you are aware than all the rates for the 91, 182 and 364 day tenors are all per annum. Your return on investment will be less if you do 182 day tenor twice, than going for 364 day tenor.

[quote author=dejiotus post=54882745]I am yet to be debited o. But my account officer promised me I will be debited tomorrow. I will confirm to the house once I am debited [/quote

Very impressed with Stanbic. Debit alert received at 18.43% as promised by my account officer.
No update yet from my GT bank account officer.

zamirikpo:
that means stanbic ibtc has the best rates so far..........from 18.38% to 18.43%..........thats nice, i will port to stanbic asap.

I am yet to be debited o. But my account officer promised me I will be debited tomorrow. I will confirm to the house once I am debited

dejiotus:
You are very much welcome. Yawa dey for town o. No news yet from both my account officers in Stanbic and GT banks regarding the rates customers will be offered for the 364 day tenor

I have just received a very good news from my Stanbic account officer. Although I am yet to be debited, these are the rates quoted for customers that submitted bids for the Treasury bills auction last Wednesday. 18.43% for 364 day; 17 % for 182 day and 13.45% for 91 day tenor. With the stop rate of 18.69%, the bank has justified my action of rejecting the bid from Zenith last week and transferring my funds to Stanbic.

zamirikpo:
thank u for this breakdown..

You are very much welcome. Yawa dey for town o. No news yet from both my account officers in Stanbic and GT banks regarding the rates customers will be offered for the 364 day tenor