₦airaland Forum

Kindly find below today's NTB auction results.

Re: the bolded below.
Its a bank. They are lending (investing) it by giving out loans at more than double the rates offered for the fixed deposit (FD) as well as earning loan arrangement fees. They are making money from their FD rate offer. In fact, the bank probably already has loan requests it wants to fund but cant because of CBN's minimum CRR - so it has to source the funding by attracting more deposits and in turn offering more attractive deposit rates. Personally, I like the 'no liquidation' condition before maturity - clever bank

Dum20:
This raises a lot of questions.

The rate is really high, higher than treasury bills offered by government. The same rates as Commercial Papers.

Where are they investing this money?

It seems something is cooking somewhere.

Further update.

$3 billion in bitcoin was sold in a last-ditch attempt to save UST stablecoin from collapse

https://www.cnbc.com/2022/05/16/what-happened-to-the-bitcoin-reserve-behind-terras-ust-stablecoin.html

skydiver01:
More than $200 billion erased from entire crypto market in a day as sell-off intensifies

https://www.cnbc.com/2022/05/12/bitcoin-btc-price-falls-below-27000-as-crypto-sell-off-intensifies.html

Sadly, I imagine so.

AngelicBeing:
No single pim because millions of crypto investors are licking the dust, let me take my dollars and go back to hide on top Mount Everest were l have been living all this while, when normalcy returns, I will be back

Dum20:
Why not buy the dip?

I always hear "Buy the dip, Buy the dip"

Sir, you are quite right.... How times change

ojesymsym:
There was a time in this life that a post like this would have opened up a series of lectures on why certain people were archaic in their thinking, why crypto was the next best investment and those pleading for caution were old aged men wearing googles, yet 7 days after you made this post, no single pim.
Na wa, this life non really balance.

Sir, I love your sarcasm...

emmanuelewumi:
Be greedy when others are fearful, this is the time to accumulate and average down.

More than $200 billion erased from entire crypto market in a day as sell-off intensifies

https://www.cnbc.com/2022/05/12/bitcoin-btc-price-falls-below-27000-as-crypto-sell-off-intensifies.html

Kindly find below yesterdays' NTB auction results.

Kwarect

Cyberknight:
Fossil fuels are still far from dead.
The so-called alternative fuel for motor vehicles - electricity or hydrogen - still require fossil fuels to generate in most cases.
Solar and wind, with current technologies, do not form an appreciable part of most countries' energy mix. The UK for instance has gone far with wind, but on a good windy day it doesnt go much beyond 30% of generation. Still burning plenty of gas, many European countries are still burning coal, even.

Hence Putin's shakara.

Crypto exchange Binance among investors to bail out victims of $615 million heist

https://www.reuters.com/business/finance/crypto-exchange-binance-among-investors-bail-out-victims-615-mln-heist-2022-04-06/

Be careful with your crypto investments.

Yes oooo

OgogoroFreak:
"Our"?

Don't be sorry for laughing... Even though its quite laughable in some sense... Although one good outcome is it is reducing the domestic cost of borrowing for our wonderful country Nigeria.

OgogoroFreak:
Lol.

I'm so sorry for laughing.

Today's NTB Auction Results.

Missed you too... pop by more often

Lazyyouth4u:
Good day all. Long time. Why this place just dry na? Where Oga Emma? What about the audio big boys and billionaires Ogogorofreak, Xiaoli, Ahiboilandgas? Abi dem dey audio billionaires convention??

Anyway just passing by. I don waka

Tranquility2345:
Guy how are your bitcoins performing? What about the ashawo house? Update us please.

No. It means it is better to invest in and enjoy the kpekus

Dum20:
Thank you bro.

Does it mean it is better to buy in the secondary market?

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Todays NTB auction results

Kindly find below NTB auction results.

Crypto Fans, Portugal is calling Zero% tax plus payment acceptance.

The ‘Bitcoin Family’ immigrates to Portugal for its 0% tax on cryptocurrencies

https://www.cnbc.com/2022/02/06/bitcoin-family-moves-to-portugal-crypto-tax-haven.html

All valid points. That is what some investing is about - taking risks with the objective of making money. One concern I have is not bitcoin as an asset class but the vulnerability of bitcoin/crypto wallets to theft. Plus I still suspect most global central banks will not allow any crypto asset to be used as an alternative to their currencies as a means of payment. As such, I expect cryptos will fade out in the coming years following more regulation. Right now and up till now its been a cowboys markets. India & China have banned cryptos and I expect more large countries will follow. Nevertheless, I wish all investors great fortunes from whichever assets they to invest in.

jedisco:
I consciously stayed off discussions on this pullback here as I didn't want to go repeating most of what I said in late May last year. At that time we had multiple threads on fp on how bitc0in wrecked folks, same also here mostly by those who didn't own bitc0in. I said something then and I'd repeat it now,

At 30k usd, the way I see buying bitc0in as a Nigerian is simple. If I buy 0.5 bitc0in for about 10 million naira, I can put that bitc0in in a savings account and earn interes of between 5-8% apr on it.

Add that to the fact that devaluation of the naira has been ongoing. If the naira devalues at 10% per annum against the dollar (as has been the case) and the value of bitc0in remains same, then thats about 16% per annum on my bitc0in naira value.

Finally, if within the next four years, bitc0in sells for 70kusd (an extremely modest estimate), I can decide to liquidate my holdings for a handsome profit.

Same will hold true whether bitc0in goes to 20k usd tomorrow or not. To me, the risk comes with not owning bitc0in

Kindly find below.

kisszhira:
What's the tbills' rate for today's auction

Happy days Time to compound once again Next stop July 2022.

skydiver01:
The next coupon for 2034 is due today 18 Jan which I expect by COB and the 2026 is due on Saturday 22 Jan which I expect on Monday 24 Jan COB.

Excellent & Good luck with your purchases. Also please do make sure you use platforms or companies that will not disappear with your acquired Bitcoins just like many have done recently.

Foodempire:
Some people still believe is the right time to buy, I inclusive.

Meanwhile, Bitcoin is down ~50% over the last 3 months. Russia announced a few days ago that it intends to ban cryptocurrencies (trading and mining) like China and India who have banned cryptocurrencies resulting in Bitcoin falling from ~$68k in November 2021 to currently ~$35k. Ouch... I imagine the party will truly be over when Europe implements its intention to ban them all.

Re: the bolded:

I think it is really a question of supply, demand and the size of the offer at any given time. The N250b Sukuk 10 year offer's marginal rate was increased to 13%, I believe, because of the size of the offer to be filled which was also extended by a day. Yesterday's auction was for a smaller size of N75b over 20 years. If the bond offer was N200b for example? Then the marginal rate would have been about c14-14.5% to fill it. This may suggest the DMO is attempting to bring down long-term borrowing costs/rates.

They may or may not be successful, since one key to achieving a reduction in long-dated FGN bond rates is to borrow less (reduce the amounts on offer) since there is currently a demand for longer-dated bonds e.g. at yesterday's auction, N214b was chasing N75b on offer (20yr) i.e., almost 3:1

If I were the DMO, I would have reduced the amount on offer rather than allot more than was offered (N89b) since amounts on offer are subject to change. But, hey, what do I know? The CBN and DMO have baffled me for years now e.g. the CBN sending 1yr TBill rates to 2% when inflation was 15%. Their reason? - to send the excess liquidity into the real economy... and then back up to 8% and then back down to c5.5% at the last auction. Suffice to say the bond markets responded accordingly

jabolo:
Yes, my bad, just saw that was a re-opened bond so pricing will reflect the yield with coupon maintained. Thanks.

I'm on oversight overdrive on DMO weird pricing - comparing that new issue 20 year bond coupon to the 10 year Sukuk.

Below is yesterdays bond auction result

Personally, the yields offered are not attractive to me but they me be to you. I usually prefer to communicate the rates/yields (price) that is attractive to me which if accepted saves one the hassle of opening new accounts with other banks/brokers. Hence my earlier response/recommendation. Nevertheless, I would seek yields in the table plus at least 60 basis points at this time. Later in the year, being an election year and Nigeria's deficit requiring more borrowing, yields may increase.

YESSConsulting:
Thanks, but you did not seem to touch on my question and request.

The next coupon for 2034 is due today 18 Jan which I expect by COB and the 2026 is due on Saturday 22 Jan which I expect on Monday 24 Jan COB.

If the rates/yields are attractive to you then proceed. If they are not attractive to you, then communicate what is attractive to you since you already bank with them.

YESSConsulting:
Hi guys, please what do you think about these rates offered by my bank? If available, please kindly recommend a better alternative

Kindly find below results of todays NTB auction.

yinkaoke:
Hello great people

Please who has the last treasury bills auction result?
Thanks

The income tax is now applicable to income from bonds held by corporates and not those held by individuals. Furthermore, capital gains tax (CGT) is applicable to equity sales by both individuals & corporates

https://pwcnigeria.typepad.com/tax_matters_nigeria/2022/01/taxing-times-you-may-be-liable-to-tax-on-your-previously-exempted-investment-income-effective-from-t.html?utm_campaign=5a78693e94a32673ae004919&utm_content=61d1d17515103c00015f1f64&utm_medium=smarpshare&utm_source=twitter

Akerewe:
APC has done it again, which tax b this one again after all the deductions from fixed income holders