Timmi:
The Central Bank of Nigeria concluded it’s Monetary Policy meeting today. Outcomes are as follows;

· MPR rate increased by 100bps to 12%

· CRR increased to 22.5% from 20%

· Asymmetric corridor around the MPR now +200bps and -500bps.

English please..
Am not an Economist, please explain in lay man's terms

tziz:

English please..
Am not an Economist, please explain in lay man's terms

The asymmetric corridor around the MPR was also adjusted to +200bps/-500bps (previously: +200bps/-700bps), implying Standing Lending Facility (SLF) at 14% and Standing Deposit Facility (SDF) at 7%. The Cash Reserve Requirement (CRR) on private and public sector deposits was also increased to 22.5% (previously: 20%) whilst the Liquidity Ratio was left unchanged at 30%. The MPC maintained its stance on the exchange rate, leaving the official rate at N197/$.


The Committee is concerned about inflation
With headline inflation in February at a 3-year high of 11.4% YoY, we were not surprised at the Committee's acknowledgement of its dissatisfaction with the trend in inflation above the monetary policy target of 6 - 9%. We think the Committee discounted the potent risks to inflation in stating that rise in electricity tariffs and PMS scarcity were the major factors responsible for the uptick in inflation, without acknowledging the weightier impact of forex scarcity on consumer prices. Nonetheless, it appears price stability remains a key concern in the MPC's policy statement hence the decision to tighten. This suggests that any reversal of the recent liquidity tightening measures and/or return to an accommodative monetary policy stance to support growth will depend on the trajectory of inflation.

CBN is trying to control inflation by restricting money supply hence the increase in CRR and interest rate.

Effects of MPR and CRR increase hits the Tbills market

23rd March Auction Results

91 Days -------5.99%

182 Days -------8.3%

364 Days---------9.55%

We are gradually going back up!

Oshee

Missed those days of 1 Yr 15% plus t-bills... I hope we will get close this yr

Good news.

Now we are talking.

feelamong:
Effects of MPR and CRR increase hits the Tbills market

23rd March Auction Results

91 Days -------5.99%

182 Days -------8.3%

364 Days---------9.55%

We are gradually going back up!

please is it possible for me to apply as low as 200k in gtb

poposki33:
please is it possible for me to apply as low as 200k in gtb

yes you can even invest as low as 100K

feelamong:
Effects of MPR and CRR increase hits the Tbills market

23rd March Auction Results

91 Days -------5.99%

182 Days -------8.3%

364 Days---------9.55%

We are gradually going back up!

Oga feelamong, what is the least amount someone can invest in GTB and what is the next bidding date? However, how is bidding date calculated.

feelamong:
Effects of MPR and CRR increase hits the Tbills market

23rd March Auction Results

91 Days -------5.99%

182 Days -------8.3%

364 Days---------9.55%

We are gradually going back up!

yet to be debited by gtb

Oh yea, Mr Feelamong. There will DEFINITELY be an increase in interest rates for Treasury bills and Mutual funds in the coming weeks judging by the increase in CRRatio and MPRates. I hope to see double digit rates. (10-15%).

But the dudes in the real sector investment are not smiling at all as the banks will now increase the lending rates being offered to them.

Ephemmm:


Oga feelamong, what is the least amount someone can invest in GTB and what is the next bidding date? However, how is bidding date calculated.

Can someone confirm it. I went to there bank and the customer carek told me I can only invest minimum of 500k

Please did anyone get 365days from zenith. Going with bank rate?

feelamong:
Effects of MPR and CRR increase hits the Tbills market

23rd March Auction Results

91 Days -------5.99%

182 Days -------8.3%

364 Days---------9.55%

We are gradually going back up!

gradually the rate is going up. This is good news for now

Good day house. I am new here and i need some clarifications as regards treasury bills. I want to pull my funds from fixed deposit to TB, is the TB rates higher than the normal fixed deposit and is there a definite auction date like everymonth, every fortnight for TB. I use firstbank.
Thanks

Ok guys, I'm considering invstring in treasury bills. HOwever, I want to start small. As such the 91 days looks a safe place to begin. Here are my questions:

Which of the banks would you guys suggest I invest with?? One with less hassle. Going by opinion on these pages, GT bank is a no go area. WHile first bank is 'iffy'.

What is the absolute minimum investable sum?

Hello house, please has anyone tried investing in Tbills from UBA? @feelamong please whatsthe next auction date?

Federal govt bond is 12% better than treasury bill at 9%, check with your bank for more info.

TopKol:
Federal govt bond is 12% better than treasury bill at 9%, check with your bank for more info.

explain, expatiate back your claim up with points and facts.

Grundig:
Ok guys, I'm considering invstring in treasury bills. HOwever, I want to start small. As such the 91 days looks a safe place to begin. Here are my questions:

Which of the banks would you guys suggest I invest with?? One with less hassle. Going by opinion on these pages, GT bank is a no go area. WHile first bank is 'iffy'.

What is the absolute minimum investable sum?

go with fidelity. 100k minimum

TopKol:
Federal govt bond is 12% better than treasury bill at 9%, check with your bank for more info.

You may not compare TB and Bonds by just looking at the rates only, you are comparing a 91 or 180 day instrument with a 5 five year instrument, it is like comparing apples and oranges
The only way to compare TBills with Bonds is by calculating the bond equivalent yield for the TBills
This is not an easy calc for the not too investment savy but we at Quantitative financial Analytics have this information for all Nigerian TBills and they are available on demand

The true yield on CBN website can be compared to interest rates on bonds.

Fixed deposits too also on the increase
Ecobank offering 5% rate for 30days
6% for 90days

Fcmb offering between 5-6%, the stingy banks like First bank offered 3.5% 30days as of last month. Let's see how they'll jack up their rate with this news.......the news should spike Fixed deposit rate, while 2016 passed Budget should spike up T.bills discounted rate.

Seun:
The true yield on CBN website can be compared to interest rates on bonds.

Why do you mods now ban innocent people and leave the guilty ones unpunished? Please look into the case of Dexter247

Pls i am new to this. I have been hearing of treasury bills for quite some time now. Pls how i have been thinking of investing into TB or fixed deposit with a little sum of 1m. Which would you advise me to pick on. I ask all d gurus here pls. What will be my profit after a long run of a year in TB and fixed deposit. I await your advise please. Secondly i have seen some banks fixed deposite rate as 5% in 30day and 6% in 90 days what does that really mean because from my knowledge of maths if 30days is 5% the 90 days should be 15%. Thanks

funkymeky:
Pls i am new to this. I have been hearing of treasury bills for quite some time now. Pls how i have been thinking of investing into TB or fixed deposit with a little sum of 1m. Which would you advise me to pick on. I ask all d gurus here pls. What will be my profit after a long run of a year in TB and fixed deposit. I await your advise please. Secondly i have seen some banks fixed deposite rate as 5% in 30day and 6% in 90 days what does that really mean because from my knowledge of maths if 30days is 5% the 90 days should be 15%. Thanks

Both Tbills and FD are low risk investment, with the current trends right now I believe FD will give you something higher than T bills. 
 Let's say you do FD for a year at 9%(net with holding tax) your interest on 1m will be 90k at the end of the year. 
Now the question on the rates you see, bear in mind all interest rates are per annum meaning if a bank or Tbills offers you 5% 1m for 3months, the calculation is first to get 5% of 1m then divide by 4 in order to pro relate it 3months since 12months makes one year.‎

ernie4life:


funkymeky:
Pls i am new to this. I have been hearing of treasury bills for quite some time now. Pls how i have been thinking of investing into TB or fixed deposit with a little sum of 1m. Which would you advise me to pick on. I ask all d gurus here pls. What will be my profit after a long run of a year in TB and fixed deposit. I await your advise please. Secondly i have seen some banks fixed deposite rate as 5% in 30day and 6% in 90 days what does that really mean because from my knowledge of maths if 30days is 5% the 90 days should be 15%. Thanks



Both Tbills and FD are low risk investment, with the current trends right now I believe FD will give you something higher than T bills. 
 Let's say you do FD for a year at 9%(net with holding tax) your interest on 1m will be 90k at the end of the year. 
Now the question on the rates you see, bear in mind all interest rates are per annum meaning if a bank or Tbills offers you 5% 1m for 3months, the calculation is first to get 5% of 1m then divide by 4 in order to pro relate it 3months since 12months makes one year.‎

I think you need to advice properly and with a clean line of thoughts. First of all, you cannot be comparing a one year FD to doing a 3 months TB and uping it to one year. Why dont you compare a one year FD to a straight one year TB or a 3 months FD to a 3 months TB. Besides, i have not seen that careless bank that will give anyone 9% P/A interest on FD. The highest you can get from the most generous bank is around 6.5% presently. The last auction for TB gave a rate of over 9%. so what are you talking about. There is no where in this world you can compare FD to TB. If you must know, your bankers take your money that you invested for FD and buy TB with it and the difference is their profit. By doing TB, you scoop all your interest. Remember even when you do FD, your interest is taxed and you get it at the end of maturity. But with TB, you get a discounted interest which means that your true yield is more than the interest you got. Dont even bother comparing the 2 of them abeg so that funkymeky is not miss led

Good evening Everyone.
Please, Is it compulsory that one can only bid the Monday preceding Thursday of which Treasury bills are traded even when one is going with the Bank's rate?
cc.feelamong

unite4real:


I think you need to advice properly and with a clean line of thoughts. First of all, you cannot be comparing a one year FD to doing a 3 months TB and uping it to one year. Why dont you compare a one year FD to a straight one year TB or a 3 months FD to a 3 months TB. Besides, i have not seen that careless bank that will give anyone 9% P/A interest on FD. The highest you can get from the most generous bank is around 6.5% presently. The last auction for TB gave a rate of over 9%. so what are you talking about. There is no where in this world you can compare FD to TB. If you must know, your bankers take your money that you invested for FD and buy TB with it and the difference is their profit. By doing TB, you scoop all your interest. Remember even when you do FD, your interest is taxed and you get it at the end of maturity. But with TB, you get a discounted interest which means that your true yield is more than the interest you got. Dont even bother comparing the 2 of them abeg so that funkymeky is not miss led

Sorry for comparing 3months Tbills to 1year FD, You can get FD for 3months at 7% so you see FD is more better, 
The problem is most of us always go to banks, there are asset management companies well regulated ( not wonder banks) that offer very competitive rates, give it a trial, the structure of banks makes them have what I would call cheap money ( lots of people have idle cash in there bank account so the banks don't even want you to do FD, I will advice you go to a couple of this asset management firms and compare there rates with that of Tbills ‎

ernie4life:


Sorry for comparing 3months Tbills to 1year FD, You can get FD for 3months at 7% so you see FD is more better, 
The problem is most of us always go to banks, there are asset management companies well regulated ( not wonder banks) that offer very competitive rates, give it a trial, the structure of banks makes them have what I would call cheap money ( lots of people have idle cash in there bank account so the banks don't even want you to do FD, I will advice you go to a couple of this asset management firms and compare there rates with that of Tbills ‎

we will be waiting for your advised as promised!!

thanks in advance

ernie4life:


Sorry for comparing 3months Tbills to 1year FD, You can get FD for 3months at 7% so you see FD is more better, 
The problem is most of us always go to banks, there are asset management companies well regulated ( not wonder banks) that offer very competitive rates, give it a trial, the structure of banks makes them have what I would call cheap money ( lots of people have idle cash in there bank account so the banks don't even want you to do FD, I will advice you go to a couple of this asset management firms and compare there rates with that of Tbills ‎

Give examples of asset management companies that offer this incrdible rate

just2endowed:


Give examples of asset management companies that offer this incrdible rate

I won't give any particular name but will recommend you go to securities and Exchange commission website sec.gov.ng check out the list of asset management companies, reach out to some of them to know there rates‎