Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years - Investment - Nairaland
Nairaland Forum › Nairaland General › Investment › Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years (917 Views)
| Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years by adebrain(op): 6:41am On Nov 08, 2015 |
Intending investors in Nigerian Treasury Bills (T-Bills) may have to rethink their strategy as Treasury Bills rate are now falling like a pack of cards. According to data released by the Central Bank a total of N122.95 billion worth of Treasury bills was sold on Wednesday in CBN’s first auction for the month of November 2015. The T-Bills had maturities of 3 to 1 year and were sold at ridiculously low yields. Investors looking to invest in treasury bills for just 91 days got a yield of just 5.82% pa. Investors with a 182 days and 364 days tenor in mind got 7.98% (previous 10.15%) and 9.48%pa (previous 10.81%). The drop in yields follows a similar drop in treasury bills yield on the secondary market. Three months treasury bills yields had dropped to as low as 4.9% on Wednesday. Analysts believe the trigger for this drop is the reduction in the cash reserve requirements of banks following the TSA directive. This has now placed a lot of cash in the hands of banks. With credit risk sky-high, banks have no choice but to pour some of that cash into government securities. Source: http://www.ebtsconsults.com/2015/11/treasury-bills-just-became-unattractive.html 1 Like 1 Share |
| Re: Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years by Adesiji77: 6:46am On Nov 08, 2015 |
Rates dropping like it's hot...  |
| Re: Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years by adebrain(op): 7:06am On Nov 08, 2015 |
Adesiji77:Lol!! i'm teling you bros |
| Re: Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years by Adesiji77: 7:31am On Nov 08, 2015 |
| Re: Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years by obiak4(m): 7:37am On Nov 08, 2015 |
Adesiji77:mutual funds are worst bro hidden charges,if you are going for it make sure you understand everything about it else you could just be investing for the ''house'' 1 Like |
| Re: Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years by Johnrake69: 7:58am On Nov 08, 2015 |
Adesiji77:Exactly... The rate on money market mutual funds keeps gaining momentum. The average rate for the past one week has been above 13.5%. Am actually with ARM, thats how I knew. |
| Re: Treasury Bills Just Became Unattractive As CBN Sells At Lowest Rate In Years by Johnrake69: 8:16am On Nov 08, 2015 |
obiak4:Bro please can you educate me on the hidden charges? Cos the last time I checked yields on mutual funds is actually tax free and there are no bank charges. Even though I work with ARM I still have investments with stanbic ibtc and first bank capital, and no regrets yet. Am even better of than my friends that bought 07-10-2015-91 Day T.bills at 10% |
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