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Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)
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Re: Treasury Bills In Nigeria by ihedioramma: 11:09am On Mar 23, 2017 |
NL1960:Let's keep our eyes open and following the saving bond it may go up nest bid or month . |
Re: Treasury Bills In Nigeria by Houstency(m): 11:17am On Mar 23, 2017 |
*. 1 Like |
Re: Treasury Bills In Nigeria by unite4real: 11:20am On Mar 23, 2017 |
ihedioramma: It may not be much. If you want to have an idea of the rate of the savings bond, keep an eye on the 3 months Treasury bills. It will just be around it. This is because the payment is quarterly which is like buying 3 months bills and reinvesting. The highest the savings bond will go is to catch up with rate for 91 day TB. 3 Likes |
Re: Treasury Bills In Nigeria by dejiotus: 11:20am On Mar 23, 2017 |
It will also be helpful if there is anyway to know the different bank's successful bidding rates. I doubt if this is possible however. Some banks may want to be too greedy, and for example may offer 16 % for 364 day tenor claiming the bank's winning bid is 16.2%. Just being hypothetical here. I am awaiting response from both Stanbic and Gt bank, (both for 364 day tenor), and I will update the house on the offers I get. I declined the offer from Zenith last week when I was offered a rate of 17.5% when the stop rate for 364 day tenor was 18.558% |
Re: Treasury Bills In Nigeria by ihedioramma: 11:28am On Mar 23, 2017 |
unite4real:So the 13.01% is for one year? Not as TB 91 days? . |
Re: Treasury Bills In Nigeria by Olamytea(m): 11:37am On Mar 23, 2017 |
pls when is the next TB bid I seriously need to know. and can some1 help me with the TB calendar fr this year 2017? |
Re: Treasury Bills In Nigeria by unite4real: 11:42am On Mar 23, 2017 |
ihedioramma: the 13.01% is for 2 years Savings Bond. Remember that the coupon payment is quarterly which is like 90/91 days. So the rate will behave like a 90 days treasury bills. As long as the 90 days TB is less than 14%, the savings bond whose payment is quarterly cannot exceed 14%. 2 Likes |
Re: Treasury Bills In Nigeria by stephyy: 11:42am On Mar 23, 2017 |
..... |
Re: Treasury Bills In Nigeria by unite4real: 11:44am On Mar 23, 2017 |
stephyy: Lend it to who? feelamong? LOL your information is sketchy. 1 Like |
Re: Treasury Bills In Nigeria by zamirikpo(m): 11:45am On Mar 23, 2017 |
PLEASE GUYZ can some one confirm that STANBIC IBTC...........still offers dsame services as before even with the DMO issue. by services i mean ,still collect less than 50m and still allow us state our individual rates. my experience from this last auction with sterling bank is that i was allowed to apply directly to the primary market, but wasnt allowed to bid at my own rate. |
Re: Treasury Bills In Nigeria by ihedioramma: 11:56am On Mar 23, 2017 |
unite4real:i never understand you, the quarterly for savings bond is it 91 days and how much will be paid ? |
Re: Treasury Bills In Nigeria by ihedioramma: 11:58am On Mar 23, 2017 |
zamirikpo:What rate did they gave you? |
Re: Treasury Bills In Nigeria by stephyy: 12:01pm On Mar 23, 2017 |
unite4real:Sorry, meant my NTB |
Re: Treasury Bills In Nigeria by NL1960: 12:03pm On Mar 23, 2017 |
unite4real: Is it the coupon payment that is quarterly or the interest payment?. |
Re: Treasury Bills In Nigeria by zamirikpo(m): 12:05pm On Mar 23, 2017 |
ihedioramma: 18%..........from the amount i invested which we r adviced not to mention here, i am down by N75,000....going with the last auction rates at 18.69% |
Re: Treasury Bills In Nigeria by ihedioramma: 12:12pm On Mar 23, 2017 |
zamirikpo:I don't understand you well . They gave you 18% and 75k did what ? |
Re: Treasury Bills In Nigeria by unite4real: 12:17pm On Mar 23, 2017 |
NL1960: the interest payment is also referred to as coupon payment. For the savings bond, there are 4 coupons in a year. for a 2 year savings bond, there are total of 8 coupons. 3 Likes |
Re: Treasury Bills In Nigeria by zamirikpo(m): 12:28pm On Mar 23, 2017 |
ihedioramma: what i am trying to say is, at 18% interest rate which sterling bank gave me, i am at a loss to the tone of 75k. because if i was allowed to quote my rate which would have been 18.5% or even 18.4%, i would be up by an aditional 75k. in summary, becos i wasnt allowed to quote my rate, i have lost 75k. which has entered the coffers of sterling bank. that is why i want to find a bank that would allow me quote my rate even with the present DMO rule. hope u get me.... 1 Like |
Re: Treasury Bills In Nigeria by unite4real: 12:29pm On Mar 23, 2017 |
ihedioramma: Yes, quarterly means 90/91 days. For example, if you buy Savings bond worth N200,000. 13.01% of N200,000 is N26,020. Since you get your interest payments every quarter, you will have to divide N26,020 by 4 which gives you N6,505. What this means is that you will be getting N6,505 every 3 months (quarterly) for the savings bond. Since the bond is for 2 years, you will get such payments 8 times in the course or life span of the bond. This is because, you have 4 quarters in a year. so in 2 years, there are 8 quarters. Total payment interest for the 2 years is N26,020 X 2 or N6,505 X 8 which gives you N52,040 Now, If you bought the last Treasury bills with N200,000 at 13.5% for 91 day tenor your interest will be N27,000 divide by 4 since you bought for a quarter of a year. interest will become N6,750. This is how the savings bond compares to the 91 day treasury bills 5 Likes |
Re: Treasury Bills In Nigeria by bosah1(m): 12:29pm On Mar 23, 2017 |
thank you very much Houstency: |
Re: Treasury Bills In Nigeria by dejiotus: 12:37pm On Mar 23, 2017 |
zamirikpo: The rate is still better than the rate of 17.5% l rejected from Zenith last week (364 tenor). Unfortunately we are not able to bid our preferred rate again in the primary market if bidding with less than 50.010 million naira |
Re: Treasury Bills In Nigeria by DMerciful(m): 12:40pm On Mar 23, 2017 |
Please house when is the next auction date for FG bond and what were the last rates. |
Re: Treasury Bills In Nigeria by dejiotus: 12:40pm On Mar 23, 2017 |
zamirikpo: No. We now have to go with the bank's bidding rate if bidding with less than 50M |
Re: Treasury Bills In Nigeria by zamirikpo(m): 12:49pm On Mar 23, 2017 |
dejiotus: do u mean @ STANBIC IBTC...... |
Re: Treasury Bills In Nigeria by NL1960: 12:51pm On Mar 23, 2017 |
unite4real: Good analysis but your forgot to factor in or mention the fact that TB is discounted with interest paid upfront which means that for the N200,000 used as example, the actual amount taken from the person is N200,000 - N6,750 = N193,250 |
Re: Treasury Bills In Nigeria by ihedioramma: 12:53pm On Mar 23, 2017 |
unite4real:I think for NTB 200,000 interest for 91 days will be 27000 at 13.50%? |
Re: Treasury Bills In Nigeria by ihedioramma: 12:57pm On Mar 23, 2017 |
NL1960:Thank's . 27000 for 91 days at #13.50% ? But savings bond is #6000+ for 91 days? |
Re: Treasury Bills In Nigeria by NL1960: 1:00pm On Mar 23, 2017 |
ihedioramma: See this "interest will become N6,750." in unite4real analysis. Interest on NTB of N200,000 for 91 days at 13.5% is N6,750 and not N27,000. |
Re: Treasury Bills In Nigeria by unite4real: 1:03pm On Mar 23, 2017 |
ihedioramma: No. thats not correct. Interest is usually per annum. Remember your simple interest calculation. N27,000 is annual interest. Since the duration here is 91 days and not 1 year, you have to divide the N27,000 by 4. this means that for treasury bills of N200,000 at 13.5% for 91 days, your interest will be N6,750. |
Re: Treasury Bills In Nigeria by ihedioramma: 1:04pm On Mar 23, 2017 |
NL1960:Ok |
Re: Treasury Bills In Nigeria by ihedioramma: 1:07pm On Mar 23, 2017 |
unite4real:Thank's . 200000 at 18% for one year will be how much ? |
Re: Treasury Bills In Nigeria by unite4real: 1:07pm On Mar 23, 2017 |
NL1960: Yes, my analysis is not true yield. Its the basic interest. Remember that all interests can be reinvested as well, so the simple analysis did not cover true yield. |
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