Also waiting for the Gurus

godash:
for tomorrow's auction, what do folks in the house think about 18.5% for 364 days?

Sorry i did not reply this earlier...currently on vacation.

I loked at the secondary markets and noticed that rates have been coming down since last thursday....

It doesnt seem like CBN is interested in doing any more OMO auctions too....maybe due to all the shouts in the media in recent times for MPR rates to be reduced to free up more money for comsumption as we are in recession...

I will therefore advise our people to reduce their rates in this Auction....for me i will go with

91 days- 13.75%

182 days- 17%

364 days - 18%


Happy Investing

feelamong:


Sorry i did not reply this earlier...currently on vacation.

I loked at the secondary markets and noticed that rates have been coming down since last thursday....

It doesnt seem like CBN is interested in doing any more OMO auctions too....maybe due to all the shouts in the media in recent times for MPR rates to be reduced to free up more money for comsumption as we are in recession...

I will therefore advise our people to reduce their rates in this Auction....for me i will go with

91 days- 13.75%

182 days- 17%

364 days - 18%


Happy Investing

Thanks @feelamong.

Let me go change my request sharp sharp. I go come back come ask questions later.

Meanwhile, enjoy your vacation!

feelamong:


Sorry i did not reply this earlier...currently on vacation.

I loked at the secondary markets and noticed that rates have been coming down since last thursday....

It doesnt seem like CBN is interested in doing any more OMO auctions too....maybe due to all the shouts in the media in recent times for MPR rates to be reduced to free up more money for comsumption as we are in recession...

I will therefore advise our people to reduce their rates in this Auction....for me i will go with

91 days- 13.75%

182 days- 17%

364 days - 18%


Happy Investing

Oga feelamong. enjoy your vacation. Please bring chocolates for me. I will come and collect it ooo

sureguy02:
[color=#990000][/color][b][/b]

Thanks for the template bro...great stuff. I am trying to understand how it works. Does this mean 1M will be debited from my account initially? Then an interest of ₦226,633.78 will be paid almost immediately? If my understanding is correct, please confirm how much will be credited to my account at maturity. I'm guessing it's the same 1M?

If this is the case, then, what is the amount I will specify on the bid form for this scenario? Is it 1M or 1.226M?

Your understanding is correct though the quoted interest suggests about 22.6% interest on the 1M if 365 day tenor, which we haven't seen in recent times.

Yes, you need specify the principal in this case 1M on your form.

feelamong:


Sorry i did not reply this earlier...currently on vacation.

I loked at the secondary markets and noticed that rates have been coming down since last thursday....

It doesnt seem like CBN is interested in doing any more OMO auctions too....maybe due to all the shouts in the media in recent times for MPR rates to be reduced to free up more money for comsumption as we are in recession...

I will therefore advise our people to reduce their rates in this Auction....for me i will go with

91 days- 13.75%

182 days- 17%

364 days - 18%


Happy Investing

Hi feelamong, please how do I calculate my yield. GTB subscribes to TB without my instruction and I want to know whether to accept or reject the bidding although I have been unsuccessful in my previous bidding with them.

I was credited with 42,314.18 on 500k in 182 days. Therefore, what is the % of this bid and how can I know the calculation because the answer I got from google search is confusing?

Omonigeriarere:


Hi feelamong, please how do I calculate my yield. GTB subscribes to TB without my instruction and I want to know whether to accept or reject the bidding although I have been unsuccessful in my previous bidding with them.

I was credited with 42,314.18 on 500k in 182 days. Therefore, what is the % of this bid and how can I know the calculation because the answer I got from google search is confusing?

Oga, your question was answered a few days ago. I don't get why you're posting this again.

Gotta go elementary on this one:

Using a simple interest formula, (i= PRT/100)and making R subject of the formula, your answer would be 16.9%.

i=42314.18
P= 500k
t=182/365
r=?

It was obtained thus

42314.18 * 365/(182*500000)

Omonigeriarere:


Hi feelamong, please how do I calculate my yield. GTB subscribes to TB without my instruction and I want to know whether to accept or reject the bidding although I have been unsuccessful in my previous bidding with them.

I was credited with 42,314.18 on 500k in 182 days. Therefore, what is the % of this bid and how can I know the calculation because the answer I got from google search is confusing?

IT IS AT 17%

Omonigeriarere:


Hi feelamong, please how do I calculate my yield. GTB subscribes to TB without my instruction and I want to know whether to accept or reject the bidding although I have been unsuccessful in my previous bidding with them.

I was credited with 42,314.18 on 500k in 182 days. Therefore, what is the % of this bid and how can I know the calculation because the answer I got from google search is confusing?

look at my post on page 212 for a Treasury bill calculator you can use.

Omonigeriarere:


Hi feelamong, please how do I calculate my yield. GTB subscribes to TB without my instruction and I want to know whether to accept or reject the bidding although I have been unsuccessful in my previous bidding with them.

I was credited with 42,314.18 on 500k in 182 days. Therefore, what is the % of this bid and how can I know the calculation because the answer I got from google search is confusing?

Bros/Sis,
It's very simple.

(Interest/Principal)*(No of days in year used/Selected tenor)*100%

Which in your case will be:
(42,313.18/500,000)*(365/182)*100%

Note: Not sure if 366 is being used for this year since 366.

There! You get your interest rate.

Pls note that yield is different.

For a 10%pa interest rate, the yield when interest paid upfront is 11.11%.

If I'm not mistaken:
Yield=(interest paid)/(principal- interest paid)

Example: 1M principal, 10% pa interest, 365 day tenor

Interest over a year = 10% of 1M= 100k

Yield= 100/900 = 0.111 = 11.11%

Simplified version: just divide your interest rate by the difference between 100% and your interest rate e.g

10%, yield = 10/90
20%, yield = 20/80
25%, yield = 25/75

Convert answers to % to get your yield. Yield is applicable when interest is paid upfront. Otherwise, no different from an interest rate.

battleaxe:


Bros/Sis,
It's very simple.

(Interest/Principal)*(No of days in year used/Selected tenor)*100%

Which in your case will be:
(42,313.18/500,000)*(365/182)*100%

Note: Not sure if 366 is being used for this year since 366.

There! You get your interest rate.

Pls note that yield is different.

For a 10%pa interest rate, the yield when interest paid upfront is 11.11%.

If I'm not mistaken:
Yield=(interest paid)/(principal- interest paid)

Example: 1M principal, 10% pa interest, 365 day tenor

Interest over a year = 10% of 1M= 100k

Yield= 100/900 = 0.111 = 11.11%

Simplified version: just divide your interest rate by the difference between 100% and your interest rate e.g

10%, yield = 10/90
20%, yield = 20/80
25%, yield = 25/75

Convert answers to % to get your yield. Yield is applicable when interest is paid upfront. Otherwise, no different from an interest rate.

Thank you. But this is contrary to my online findings: that is why I come here to seek for answer. Click here - http://www.fool.com/knowledge-center/how-to-calculate-the-asked-yield-on-a-t-bill.aspx

pls who has bought tbills via investment one before?
they say there only charge is 0.5%of the discount rate as determined at the auction.

is this cheaper than the charges by our banks?
they also said i can get a stop rate of 21%?
we are looking at a principal of 1M

thanks in advance

engbash:
pls who has bought tbills via investment one before?
they say there only charge is 0.5%of the discount rate as determined at the auction.

is this cheaper than the charges by our banks?
they also said i can get a stop rate of 21%?
we are looking at a principal of 1M

thanks in advance

I used investment one for my last purchase.

I bidded and won 182 days at 17%. They removed 0.5% OUT OF that rate as charges (so the charge was face value * 0.5% * 182 days * ~366 days) bringing my effective bid rate to 16.5% with no other charges. From my calculation, that charge was over 3x the standard charge in other banks.

godash:


I used investment one for my last purchase.

I bidded and won 182 days at 17%. They removed 0.5% OUT OF that rate as charges (so the charge was face value * 0.5% * 182 days * ~366 days) bringing my effective bid rate to 16.5% with no other charges. From my calculation, that charge was over 3x the standard charge in other banks.

Hahahahaha

I know investment -one financial services Ltd will never come last in duely overcharging their customers. ....

Anybody that wants to listen should go with the popular banks ogas in this forum are using for their NTB. ....my 1 naira change advise...

imagine 99 days I got at 13 percent

Any update ?

Is like no auction today

Still waiting for the results myself.

@feelamong and other ogas in the house......any NTB stop rate result from CBN. .....why the delay



Thanks

Wow, the rates are ridiculous. Unbelievable. But how can we be sure they won't default? They have done a lot of unthinkable things...

Seun:
Wow, the rates are ridiculous. Unbelievable. But how can we be sure they won't default? They have done a lot of unthinkable things...

@Seun, It would be great if you explain what u mean sir.

Seun:
Wow, the rates are ridiculous. Unbelievable. But how can we be sure they won't default? They have done a lot of unthinkable things...

@bolded: They would rather print more notes. TBs are not called ''risk-free'' securities for nothing

Seun:
Wow, the rates are ridiculous. Unbelievable. But how can we be sure they won't default? They have done a lot of unthinkable things...

Seun are u sure of what u are saying? This is treasury bills forum and mind u the rate are determined by cbn due to inflation rate and other factors. Inflation currently at 17.1 percent and the 1yr TB rate is hovering around 18 percent. So there is no wow or ridiculous rate here if u picture time value of money but it's good to invest in TB than just banking it in savings or fixed account.

And lastly, Government do not default in meeting there obligation. So it's safe

Please who uses UBA for the purpose of tbills here? How good are they in handling all tbills related issues...

I hope they don't charge like investment one?

I think the rates seem to go with the inflation rate at a time when money must be borrowed. This is expectable. Projections of inflation rate seem to suggest this high inflation will be there for some time; effectively reducing perceived gains. There has been a negative change in the rate of increase of inflation rate so far and feelamong's suggested rates seem to be in line - 18 for 364 - for the next. These uncertainties will be cleared soon.

You raised an interesting point, the rates offered by the CBN are attractive to doubt their ability to repay back

BUT

Nigerian economy is at a declining stage, the CBN is doing everything it can to restore faith for doing business in Nigeria by offering these attractive rates. In turn, it makes profits by borrowing back to businesses, corporate bodies etc.

Every Bank in Nigeria has to declare itself bankrupt before the CBN defaults in its legal obligation and debt management. The CBN regulates these Banks and make monetary policies that affects all financial institutions trading in Nigeria.

Honestly interest rate of 18% for a 365 days investment is not good enough for me. I do expect 50% interest rate but of course that will never be made public even though I'm getting nearly 40% interest on my investment.

Treasury bills is a liquid investment that's why repayment is most likely in any circumstance.

Seun:
Wow, the rates are ridiculous. Unbelievable. But how can we be sure they won't default? They have done a lot of unthinkable things...

Please be informed that stanbic IBTC was successful at the auction for the 91 & 364 day bill today.

Their selling rates are stated below;

Maturity --- Tenor --- Discount rate

22nd December 2016 - 91 days - 13.89%

21st September 2017 - 364 days - 18.10%

Please note that the bid for the 182 day bid was unsuccessful because the bank put in bid rate of 17.40% while the CBN stop rate was 17.27%.

lilee2hot:
Please be informed that stanbic IBTC was successful at the auction for the 91 & 364 day bill today.

Their selling rates are stated below;

Maturity --- Tenor --- Discount rate

22nd December 2016 - 91 days - 13.89%

21st September 2017 - 364 days - 18.10%

Please note that the bid for the 182 day bid was unsuccessful because the bank put in bid rate of 17.40% while the CBN stop rate was 17.27%.

Excellent!!!

Bidded 17% for 182 days some people in my church..

At least now the Pastor can start giving some dough from the tithe box!!! ;

Quoted 17.2% for 182days

lilee2hot:
Please be informed that stanbic IBTC was successful at the auction for the 91 & 364 day bill today.

Their selling rates are stated below;

Maturity --- Tenor --- Discount rate

22nd December 2016 - 91 days - 13.89%

21st September 2017 - 364 days - 18.10%

Please note that the bid for the 182 day bid was unsuccessful because the bank put in bid rate of 17.40% while the CBN stop rate was 17.27%.

What was the CBN stop rates for 91 and 364 days?

feelamong:

Sorry i did not reply this earlier...currently on vacation.
I loked at the secondary markets and noticed that rates have been coming down since last thursday....
It doesnt seem like CBN is interested in doing any more OMO auctions too....maybe due to all the shouts in the media in recent times for MPR rates to be reduced to free up more money for comsumption as we are in recession...
I will therefore advise our people to reduce their rates in this Auction....for me i will go with
91 days- 13.75%
182 days- 17%
364 days - 18%
Happy Investing

bros you were not far from the mark in your predictions based on yesterdays successful bids.... nice one