Treasury Bills In Nigeria - Investment (191) - Nairaland
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| Re: Treasury Bills In Nigeria by feelamong(m): 7:44am On Aug 12, 2016 |
Chidieberelex: Oga, Like i posited before, rates have been coming down seriiously and only a CBN OMO can save the rates for now. Yesterday 364 days Bill in the secondary market closed below 16%... next week we are looking at over N600B maturing in the FGN Bond and only N120B to be taken up in the proposed Auction. Most of these funds belong to the PFAs and for these guys they basically have no other outlet other than govt securities... I rushed to purchase 91 days bill for a cousin at 14% the other day in the secondary market cos at this rate it might even close below that ...UNLESS CBN MOPS UP 2 Likes |
| Re: Treasury Bills In Nigeria by unite4real: 8:58am On Aug 12, 2016 |
Kasjudy: My advice is to take your time to read from the beginning of this post from page 1. You will be grateful you did. |
| Re: Treasury Bills In Nigeria by unite4real: 8:59am On Aug 12, 2016 |
feelamong: Spot-on. The supply overwhelming the demand by a very wide margin. Yield must drop as a result. 2 Likes |
| Re: Treasury Bills In Nigeria by feelamong(m): 10:44am On Aug 12, 2016 |
CBN has just announced OMO... This should be the game changer on the yields and Tbills discount rate going forward!  2 Likes |
| Re: Treasury Bills In Nigeria by ukay2: 10:56am On Aug 12, 2016 |
feelamong: Pls oga feelamong... What is OMO and how does OMO affect NTB.. Can one invest in OMO....? Thanks for your response..... 1 Like |
| Re: Treasury Bills In Nigeria by Nobody: 11:01am On Aug 12, 2016 |
am abt visiting my bank to tender my intrest for the next bid, can u please provide insight on hw you think the primary market will go, i just liquidated my mutual funds which was giving me 10 percent? To the pros in the house pls provide clarification on what omo means and hw this may affect the treasury bills rate. |
| Re: Treasury Bills In Nigeria by feelamong(m): 11:53am On Aug 12, 2016 |
ukay2: From wikipedia An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks. The central bank can either buy or sell government bonds in the open market (this is where the name was historically derived from) or, which is now mostly the preferred solution, enter into a repo or secured lending transaction with a commercial bank: the central bank gives the money as a deposit for a defined period and synchronously takes an eligible asset as collateral. A central bank uses OMO as the primary means of implementing monetary policy. The usual aim of open market operations is - asides from supplying commercial banks with liquidity and sometimes taking surplus liquidity from commercial banks - to manipulate the short-term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply. So thhat the wikipedia definition of OMO... It is used by the central bank to mop up or increase liquidity depending on what they want to achieve as this has an effect on the Discount rate/Interest rate in the short term. How does it affect Treasury Bills? Since the level of Liquidity affects the rates at which Investors are readily willing to quote, a reduction in the liquidity would mean that there will be fewer funds chasing these Bills and as such Investors would quote higher rates. when there is excess liquidity, usually you have a bullish session where Investors would just be willing to invest at lower rates unlike what you get in periods of tight liquidity can one Invest in OMO? I asked my bankers and he said YES..if you are a High networth Investor like Banks/PFAs/Investment Houses. Also becos the CBN notice is usually very short, at times just 20mins its only those with very ready liquidity that are able to benefit from this.. 1 Like |
| Re: Treasury Bills In Nigeria by sanerugwei: 11:58am On Aug 12, 2016 |
Oga feelamong, What rates were announced in the OMO by CBN? feelamong: |
| Re: Treasury Bills In Nigeria by feelamong(m): 1:49pm On Aug 12, 2016 |
sanerugwei: Not sure yet... havent been told by my bankers yet.. |
| Re: Treasury Bills In Nigeria by Nobody: 3:19pm On Aug 12, 2016 |
guys i just did approached my bank to help me bid for 1m at the primary market. I hv exactly one million in my savings account, are there other charges involved and will my bid sale through? If yes what the charges? |
| Re: Treasury Bills In Nigeria by feelamong(m): 3:55pm On Aug 12, 2016 |
sanerugwei: OMO 12/08/2016 Amount on Offer - N50B Tenor - 188 days Total subscription - N256B Total sale - N256B Stop rate - 18% |
| Re: Treasury Bills In Nigeria by Ihavespoken: 3:57pm On Aug 12, 2016 |
Your bid will sail through like ABCD. The only other charges are transaction charges and 0.0125% tax which should be deducted after interest payable. In other news, you can bring your tithes forward so we can move the ministry to the permanent site  overcomer123: |
| Re: Treasury Bills In Nigeria by rebekah2011(m): 4:32pm On Aug 12, 2016 |
feelamong: 1 Like |
| Re: Treasury Bills In Nigeria by Chidieberelex: 5:22pm On Aug 12, 2016 |
feelamong: Boss @feelamong , I want to invest 3m ,and have been hoping that d rate remain at 18%, I am very furious with d lady at Stanbicibtc bank for not allowing to go with my own rate, I am a first time subscriber, now I missed out. Please should I go n buy from d secondary market  ? Can't imagine not getting more than 15% in the next bid |
| Re: Treasury Bills In Nigeria by Chidieberelex: 5:29pm On Aug 12, 2016 |
[quote authoarer=rebekah2011 post=48423410][/quote] Are u saying the rate will be around 18% for 364 days in d next bid. Please I need to know |
| Re: Treasury Bills In Nigeria by feelamong(m): 6:30pm On Aug 12, 2016 |
Chidieberelex: The market is still very liquid... Even with the OMO auction...lets wait till Monday to see how it goes...CBN might be coming in for more OMO auction |
| Re: Treasury Bills In Nigeria by Nobody: 7:05pm On Aug 12, 2016 |
@feelamong Can individual bid for OMO? If so the procedure please. And also are OMO schedule bi-weekly just like TB. |
| Re: Treasury Bills In Nigeria by ukay2: 7:19pm On Aug 12, 2016 |
Thanks my oga feelamong for your kind response. God bless you. Amen 1 Like |
| Re: Treasury Bills In Nigeria by otokx(m): 9:37pm On Aug 12, 2016 |
This OMO is not looking bad at all. |
| Re: Treasury Bills In Nigeria by zamirikpo(m): 10:02pm On Aug 12, 2016 |
Thank u Jesus, my fasting and praying is working ,if CBN omo is 18%, Ntb rates would remain dsame . @feelamong u r a great guy......a good class captain/class rep. I have given instructions to my account officer to bid for 18% after missing out on a gamble last time. So anything less would be a huge disappointment . D economy hasn't changed much since last week ,I expect status quo on d rates. |
| Re: Treasury Bills In Nigeria by easyflow: 10:19pm On Aug 12, 2016 |
zamirikpo: Please which bank are you using |
| Re: Treasury Bills In Nigeria by Nobody: 2:19am On Aug 13, 2016 |
zamirikpo:You actually did that? You get mind oo! You should have instructed that he enter 17% or 17.5%, instead of 18% to be in a safer side. |
| Re: Treasury Bills In Nigeria by zamirikpo(m): 4:38am On Aug 13, 2016 |
@easyflow I use skyebank.....d thing is I had to teach my account officer how d ntb works,he had no idea. So now all I have to do is fund my account,call him and he does d rest thru their head office. @royal155, yes ooh,18% for 182days, unless am instructed otherwise by some gurus in dis house....18% it is,although 17.5% would be safer.....but let's wait till Monday. I personally expect rates to move up a notch. Fingers crossed......keenly monitoring this house for any developments.... |
| Re: Treasury Bills In Nigeria by easyflow: 6:15am On Aug 13, 2016 |
zamirikpo: Thanks bro, same thing. My account manager in Gtbank don't know anything about it as Well. It seems I have to fill the form before the transaction can be done. |
| Re: Treasury Bills In Nigeria by confluence: 6:29am On Aug 13, 2016 |
CBN raises N256bn from treasury bills at 18% yield — 13th August 2016 By Omodele Adigun In a bid to attract foreign investors to the country, the Central Bank of Nigeria (CBN) has raised N256 billion in six-month treasury bill at a higher yield of 18 per cent yesterday The amount is about N206 billion above what it had planned to issue and foreign exchange (forex) traders said the development sent the inter-bank overnight lending rate spiralling to 23 per cent, from its previous level of 10 per cent. The overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or overnight) funds among themselves. Commercial banks on Friday were paying for treasury bill purchases and a foreign currency intervention, traders said, thereby reducing the amount of naira in the banking system. The CBN, which has been selling hard currency almost daily, has been offering treasury bills at high rates to attract offshore flows into Nigeria, which has been hit by the fall in oil prices, prompting foreign players to flee bond and equities markets. Analysts are of the view that confidence in the country has been punctured which caused the investor apathy and the current forex scarcity. “Investors, both local and international, complain that we don’t have the reserves to meet all the maturing obligations or all our obligations. So, they are not bringing in their money,” said Mr. Johnson Chukwu, the Managing Director of Cowry Assets Management Ltd. “The Central Bank is trying to drive the economy with bills and bonds that is they are offering securities at such high yields,” one trader said. The CBN also intervened on the currency markets after the naira hit an all-time low of N353.75 on the interbank market on Friday. By close, the naira was trading back at 310. The currency has been hitting new lows since this week. Traders say banking system liquidity has been in de it for more than a week as the central bank continues to drain cash to support the currency. But it opened with a credit of N84 billion on Friday due to treasury bill maturities, they said. http://sunnewsonline.com/cbn-raises-n256bn-from-treasury-bills-at-18-yield/ 1 Like |
| Re: Treasury Bills In Nigeria by 40manlappy: 12:23pm On Aug 13, 2016 |
zamirikpo: Most bank workers do not really know how NTB works. The focus is on opening accounts and getting them funded. Treasury Bills doesn't count for account officers and there are usually no targets for them. They would rather encourage you to do term deposits which will increase their balance sheet. Cc: easyflow 5 Likes |
| Re: Treasury Bills In Nigeria by Johnmichael2016: 6:21pm On Aug 13, 2016 |
Different Types of Investments Overall, there are three different kinds of investments. These include stocks, bonds, and cash. Sounds simple, right? Well, unfortunately, it gets very complicated from there. You see, each type of investment has numerous types of investments that fall under it. There is quite a bit to learn about each different investment type. The stock market can be a big scary place for those who know little or nothing about investing. Fortunately, the amount of information that you need to learn has a direct relation to the type of investor that you are. There are also three types of investors: conservative, moderate, and aggressive. The different types of investments also cater to the two levels of risk tolerance: high risk and low risk. Conservative investors often invest in cash. This means that they put their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments. Moderate investors often invest in cash and bonds, and may dabble in the stock market. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate, providing that it is low risk real estate. Aggressive investors commonly do most of their investing in the stock market, which is higher risk. They also tend to invest in business ventures as well as higher risk real estate. For instance, if an aggressive investor puts his or her money into an older apartment building, then invests more money renovating the property, they are running a risk. They expect to be able to rent the apartments out for more money than the apartments are currently worth – or to sell the entire property for a profit on their initial investments. In some cases, this works out just fine, and in other cases, it doesn’t. It’s a risk. Before you start investing in FBN Capital Asset Management ,Asset Management it is very important that you learn about the different types of investments, and what those investments can do for you. Understand the risks involved, and pay attention to past trends as well. History does indeed repeat itself, and investors know this first hand! FBNQuest is a part of FBN Holdings Plc, one of the strongest and most dependable financial groups in Africa. Our clients include some of the largest Nigerian and multinational corporations, Federal and State governments and other leading investment bank investment bank operators across Sub-Saharan Africa. Our in-depth industry knowledge, regional market expertise, and excellent network of investors and financial institutions means we can offer strategic advice across a range of sectors at the highest levels, arrange tailor-made financing structures, manage risk and ultimately help your business grow. 2 Likes |
| Re: Treasury Bills In Nigeria by Shakitibob0: 6:34pm On Aug 13, 2016 |
Hello house i want to try this tbills of a thing with 1m naira - - - please hope my fund is safe? I will try it for three months - - i have an account with uba and this is my first try |
| Re: Treasury Bills In Nigeria by Biggybountz: 8:34am On Aug 14, 2016 |
Morning All, I must say a big thank you to every one that has contributed here in terms of questions and answers. Every information here has been insightful as I have taken my time to read through for weeks now. My Questions & Circumstance - I am presently not resident in Nigeria and not plans to be around anytime soon. - I have a current account with GTB which I have just started - my GTB account officer has advised me on investing in fixed deposit (5.5% pa). This suggestion is not best for me as TB seems to have a greater yield -I have asked her about GTB TBills and her response was its the investment arm of the bank that specialises in that and she will advise me to do fixed deposit instead My Questions 1) am I able to invest in the TBills and monitor it closely without my physical presence in Nigeria? 2) Is anyone on here currently investing in GTB TBills and able to give me a piggyback so I can be more informed, will appreciate guidelines and suggestions on who to speak with within GTB from you. Thanks in advance. 3) What is the CBN stop rate, I have read about bidding below/above it on here. But it still remains unclear, what are the advantages or disadvantages of bidding below/above it? 4) am I able to quote my own acceptable rate and what are the disadvantage/advantages of doing this? Thanks a lot to every one. Happy Sunday to us all! |
| Re: Treasury Bills In Nigeria by ummitoagirl(f): 9:25am On Aug 14, 2016 |
I had loads of petty charges on my TBIlls by Ecobank, it totaled to about N10k, vat, custodian charges etc. I am leaving them after my 364 tenor. I am investing this week!!! So, I pray their recommended stop rates make loads of sense. |
| Re: Treasury Bills In Nigeria by Nobody: 11:59am On Aug 14, 2016 |
5.5 thats armed robbery been with gtb,for,4 years rate are over 15 the investment banking is in same place as any branch just ask investment section write an application which,is,forward to head office..u can scan and send to ur,account officer..buy,bond,if u,will not be,around for,long 15.54,by,the,time,u,back u,fund go be almost double in 5,yrs it zero,risk less risky,than,fixed deposite bank can go under 1 Like |
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