just2endowed:
Can anyone drop bid rates for the previous auction?

I have asked this question before no one seems to ans.

@feelamong

The stop rates for the last Auction!!

91 days: 14.3890.

182days: 17.500.

364days: 18.4240.


I still think we will see around the same in this auction..

feelamong:


My bankers have confirmed that there is 364 days..

Thanks. ..Pls what rates are we going for the different tenors....
Is 20% good for 364 days


Pls advise us as this 17.13 % inflation rate is high...

Thanks

ukay2:



Thanks. ..Pls what rates are we going for the different tenors....
Is 20% good for 364 days


Pls advise us as this 17.13 % inflation rate is high...

Thanks

hahahaha 20% where you keep ur gun

the highest we have seen at the OMO is 18.5%

i dont think we will see anything higher than that, mind you Forcadoes is back online, that should help CBN in their search for Forex..

Thanks. ..Pls what rates are we going for the different tenors....
Is 20% good for 364 days


Pls advise us as this 17.13 % inflation rate is high...

Thanks

@ukay2.............

u dey vex ooh.......20%......chai......how i wish.....


@feelamong. when u say forcados, u mean the offshore rig, i guess, but even that cant help the situation, we are neck deep in this shit.....we need much more to alleviate the deficit. i expect 182 and 365 day rates to remain above 15% for a while........say uptill the 2nd quater of 2017. my thoughs tho.

Now that the govt is going on aggressive borrowing from the world bank, and other external creditors. will it affect TB rate to go south wards?

@feelamong and others....Pls advise us on the bidding rates for 91, 182 and 364 days NTB. ..

@successgee, any info on advise rates from standard bank?


Thanks..

feelamong:


The stop rates for the last Auction!!

91 days: 14.3890.

182days: 17.500.

364days: 18.4240.


I still think we will see around the same in this auction..

Thats why I put in my bid at 17.225 for 182 days yesterday. Hope it sails through.

I'll go for 91days at 14.25%
wish me luck....it's my 1st time

ukay2:
@feelamong and others....Pls advise us on the bidding rates for 91, 182 and 364 days NTB. ..

@successgee, any info on advise rates from standard bank?


Thanks..

Am still betting around the last Auction stop rates..

Liquidity i still very mush! and we still need to attract the FPIs

NOLONGTIN1:
I'll go for 91days at 14.25%

wish me luck....it's my 1st time

Good Luck..

after we go follow u share the Upfront Interest o!

#FirstFruitThings

feelamong:


Am still betting around the last Auction stop rates..

Liquidity i still very mush! and we still need to attract the FPIs

So 18.4- 18.3% % is good to go for 364days ntb abi?

I went to diamond bank dis morning n they said I didn't come on time dat I shud come on Wednesday morning before 10, wat I want to know is if it's still possible for me to apply by dat time since d auction is on Thursday.

FIDELITY24:
I went to diamond bank dis morning n they said I didn't come on time dat I shud come on Wednesday morning before 10, wat I want to know is if it's still possible for me to apply by dat time since d auction is on Thursday.

I went to diamond yesterday too.....it's like they are clueless when it comes to treasury bills (saved me the stress of opening an account with them).

they couldn't offer me much help in my enquiry about treasury bills except their own bank rates. 13.23%.

they have no idea when CBN auctions. everything I know, was from here.

when I went to my bank to submit my bill, I did that I writing - I was always of the opinion that there was a form.

I was the one that told the staff that 12noon was the deadline, he was suggesting I come next week since I informed him the auction wasn't till 15th. ...i just laff and told him in clear terms that 2day was the last day

Submitted 18.3% for 364 days. ..may God see me through. ..Amen

Hello feelamong ukay2 kindly advise me on how to fill this form. I was told to scan and send it to them. Should I go for OMO or Primary Market?

Annalise:
Hello feelamong ukay2 kindly advise me on how to fill this form. I was told to scan and send it to them. Should I go for OMO or Primary Market?

Choose primary market. ..

Don't choose any roll over. ..let them pay you the interest after deducting the face value same day

If you want to bid safe i expect you drop a min 0.2% from last auction's stop rates and pray that your bankers do a nice bidding job for you. If you want to win at all cost then go for prevailing market rate. That's the best way to play safe.

Happy Sallah and Happy investing

Secondary Market rates closed mostly SouthWards today. This is a pointer to what is to expect next week. Monday and Tuesday is public holiday. No time for OMO. Wish you guys who have thrown in bids best of luck.

ukay2:


Choose primary market. ..

Don't choose any roll over. ..let them pay you the interest after deducting the face value same day

ok, thank you. But I would like to reinvest the interest immediately. How is that possible?

Annalise:

ok, thank you. But I would like to reinvest the interest immediately. How is that possible?

Its not possible to reinvest the interest immediately as the interest is paid upfront...but the bank may deceive you that they will do that...meaning they will hold your interest for you till the tenkr expires without giving you any interest on your ntb interest....

When you cool down and analyse how NTB works, you will not want bank to reinvest the interest for you, rather you reinvest the interest yourself in the next ntb bidding week....
For example, you invested 6m last week for 1yr and your interest cbn paid you is about 1m, you can quietly reinvest the 1m in next auction day.....and get another 180k interest which you can reinvest yourself in the next ntb auction date and get another 25k which you may reinvest if you made it up to 100k.....that is the power of compound interest..

Pls all these figures are examples, not the real interest you may get..

Hope you understand....reinvest your interest yourself in the next bidding date...

Good evening guys,
I keep seeing this acronym 'OMO' here...pls what does it stands for??
Also what advantage does bidding for a longer duration over a short term; i.e., why choose 364days and 182 days over 91days since the difference in the interest rate isn't much? I mean one could decide to reinvest the 91days capital after the due date n still make almst 4times benefit??
Someone who has a better understanding shoud pls share. (Cos me still dey learn)
Thanks in anticipation

ukay2:


Its not possible to reinvest the interest immediately as the interest is paid upfront...but the bank may deceive you that they will do that...meaning they will hold your interest for you till the tenkr expires without giving you any interest on your ntb interest....

When you cool down and analyse how NTB works, you will not want bank to reinvest the interest for you, rather you reinvest the interest yourself in the next ntb bidding week....
For example, you invested 6m last week for 1yr and your interest cbn paid you is about 1m, you can quietly reinvest the 1m in next auction day.....and get another 180k interest which you can reinvest yourself in the next ntb auction date and get another 25k which you may reinvest if you made it up to 100k.....that is the power of compound interest..

Pls all these figures are examples, not the real interest you may get..

Hope you understand....reinvest your interest yourself in the next bidding date...

Thank you for taking time to explain it very succinctly. I will follow updates here and keep myself up to date with subsequent auction dates.

@annalise

Pls, the above explaination while mostly right is wrong on 2 major items.

1. It is possible to re-invest your interest. I do not believe Exobank offers that. A lot of other banks do that.

2. If you choose to reinvest your Interest, the exact compounding described is what happens. Except you get that in one go on the day of your bidding. Why wait for the next 2 weeks and the next 2 weeks to re-bid your interest? With the attendant possibility of loosing your bid? And multiple transaction charges, however minimal?( I.e. The 100 Naira charged per transaction?)

I am sure First Bank and GTB offer this, not sure about other banks.

battleaxe:
@annalise

Pls, the above explaination while mostly right is wrong on 2 major items.

1. It is possible to re-invest your interest. I do not believe Exobank offers that. A lot of other banks do that.

2. If you choose to reinvest your Interest, the exact compounding described is what happens. Except you get that in one go on the day of your bidding. Why wait for the next 2 weeks and the next 2 weeks to re-bid your interest? With the attendant possibility of loosing your bid? And multiple transaction charges, however minimal?( I.e. The 100 Naira charged per transaction?)

I am sure First Bank and GTB offer this, not sure about other banks.

Thank you. I am with ecobank but I'll ask them if they will do this the way you said. Thanks again.

godash:


Is this 0.125% commission fee same as the custody fee also mentioned above?

I asked because Investment-One, [url]investment-one.com/about-us/corporate-profile/[/url] bought ~1 million naira of TB @ 17.0% at the last auction on my behalf and I've just being informed they'll be charging me 0.5% of the interest as commission. I'm still trying to get some clarify about the charge.

@godash ......By at the last auction you mean Aug 31st, right? For what tenor did they give you the 17% because I deal with them as well, and I got 16.85% for 182 days. I'm wondering if the rate they dish out to people differ even though its the same tenor. Anyone else with useful info can shed more light on this please. Thanks

feelamong:


I move between TBill, Bonds and shares....and I want a firm that can handle all for me without transfer charges or delays...

moreover at times I trade on Margin..

Our oga @feelamong you inspire me and I would love to learn as much as possible from you. I am keen about investments and also keen about making the most out of it too. You mentioned that you move between Tbills, Bonds and Shares. As of shares in particular, how do you move on it? I have some stocks as well but I just leave there for the long term because I can't even sell right now or I'll be losing a lot of hard earned money. What I would like to know now is, how do you trade your own shares? Do you leave for long term or you trade week in, week out?

Plus what is trading on Margin too?

I'm listening attentively boss @feelamong

feelamong:


Am still betting around the last Auction stop rates..

Liquidity i still very mush! and we still need to attract the FPIs

@feelamong,

Good morning, I sent a mail to you kindly check it.

Thanks for your efforts on the forum.

Have a great holiday.

xpertise:
Good evening guys,
I keep seeing this acronym 'OMO' here...pls what does it stands for??

I know OMO means Open Market Operations. I see that there's some details about it in the 3rd table at the CBN link https://www.cbn.gov.ng/rates/GovtSecurities.asp. But then, I can't say I know exactly how
.
1) OMO is similar to or different from Nigerian Treasury Bills (NTB), or
2) OMO rates can be used to get an idea of what stop rate to expect for upcoming NTB auctions

Hoping others can explain.

ukay2:


Its not possible to reinvest the interest immediately as the interest is paid upfront...but the bank may deceive you that they will do that...meaning they will hold your interest for you till the tenkr expires without giving you any interest on your ntb interest....

When you cool down and analyse how NTB works, you will not want bank to reinvest the interest for you, rather you reinvest the interest yourself in the next ntb bidding week....
For example, you invested 6m last week for 1yr and your interest cbn paid you is about 1m, you can quietly reinvest the 1m in next auction day.....and get another 180k interest which you can reinvest yourself in the next ntb auction date and get another 25k which you may reinvest if you made it up to 100k.....that is the power of compound interest..

Pls all these figures are examples, not the real interest you may get..

Hope you understand....reinvest your interest yourself in the next bidding date...

It's possible to re-invest the upfront "interest" right off the bat without needing your bank to do it for you. You'll just have to figure it out yourself.

If you have a million naira to invest and you order a TB with a face value of N1 million at say 10% discounted rate for a 182-day tenor, rather than the bank taking the N1 million from your account and then paying you the N100,000 "interest" (minus some fees), what will most likely happen is (and i stand corrected here), they will simply take N900K (plus some fees) from your account. But at maturity, you will be paid the face value of N1 million 182 plus 1 days later.

So, if you can do the calculations yourself, you can figure out what the face value will need to be for the bank to take your entire N1 million from your account as the discounted value. In the above example, that face value will be ~N1,051,717 (including all standard fees). See calculations below.

manlikegb:



@godash ......By at the last auction you mean Aug 31st, right? For what tenor did they give you the 17% because I deal with them as well, and I got 16.85% for 182 days. I'm wondering if the rate they dish out to people differ even though its the same tenor. Anyone else with useful info can shed more light on this please. Thanks

Right. I requested by email for a bid rate of 17.0% for 182 days. They acknowledge first by email that I got served at 17.0% but the investment advice letter they later sent showed a discount rate of 16.5% so I'm ironing that out with them right now.

I would love to reach you directly to discuss some more about them.

Hello, can someone please give me details about how treasury bills work,thanks.

Lizzieo:
Hello, can someone please give me details about how treasury bills work,thanks.

You can do yourself a whole lot of good if you can go through the thread from the beginning. You will be glad you did.