Good evening,

Got this over the weekend.
Snapshot of some details about FGN Savings bond launching tomorrow.

Disclaimer: I don't work for/with ARM. Rates could be different.

2 year savings bond has just been announced. its just 13%. not attractive to me. you can see that we have technically been shut out.

Inflation is 18%, MPC at 14%. What am i doing with 13%. Mtcheeeeew.

https://dmo.gov.ng/fgn-bonds/savings-bond/1981-fgn-savings-bond-offer-for-subscription/file

unite4real:
2 year savings bond has just been announced. its just 13%. not attractive to me. you can see that we have technically been shut out.

Inflation is 18%, MPC at 14%. What am i doing with 13%. Mtcheeeeew.

https://dmo.gov.ng/fgn-bonds/savings-bond/1981-fgn-savings-bond-offer-for-subscription/file

Pls can you share the link where you got the 13% rate for FGN Savings Bond.

The pix share up there said 16% indicative rate.
One may have to wait a bit to see how things pan out though.

In other news, normal primary auction will still go on as usual, but can anyone confirm if we can still put in personal bid rates?
Happy investing week, guys(and ladies)

sanerugwei:


Pls can you share the link where you got the 13% rate for FGN Savings Bond.

The pix share up there said 16% indicative rate.
One may have to wait a bit to see how things pan out though.

In other news, normal primary auction will still go on as usual, but can anyone confirm if we can still put in personal bid rates?
Happy investing week, guys(and ladies)

It has just been confirmed now to be 13.01%

see the attached form below..

sanerugwei:


Pls can you share the link where you got the 13% rate for FGN Savings Bond.

The pix share up there said 16% indicative rate.
One may have to wait a bit to see how things pan out though.

In other news, normal primary auction will still go on as usual, but can anyone confirm if we can still put in personal bid rates?
Happy investing week, guys(and ladies)

The 16% you saw yesterday could not have been correct because dmo said announcement will be made today 13th. They published it this morning. Here is the link

https://dmo.gov.ng/fgn-bonds/savings-bond/1981-fgn-savings-bond-offer-for-subscription/file

feelamong:


It has just been confirmed now to be 13.01%

see the attached form below..

How can they give 13.01% in this economy ? At least they should give us at least MPR -14% min if they intend to shut us folks out of the TBills.

It,s not fair ..

Willie2015:


How can they give 13.01% in this economy ? At least they should give us at least MPR -14% min if they intend to shut us folks out of the TBills.

It,s not fair ..

You are not shut out of TBills, you can still bid for this weeks auction as follows:
Less than 50Mil use bank rate
Greater than 50Mil use personal rate or bank rate.

Am going with stanbic ibtc bank rate for 364days NTB. ...let's see how it goes. ....

FGN Savings Bond at 13.01% is not good at all.

I think the Treasury Bills market still maintains the status quo, I just placed my bid for 18.4% with Stanbic IBTC, I will watch to see how it goes.

Ojix85:
Good evening,

Got this over the weekend.
Snapshot of some details about FGN Savings bond launching tomorrow.

Disclaimer: I don't work for/with ARM. Rates could be different.

Someone would wonder where ARM got their 16% from.

Lets wait to see the rates for the 3 yr savings bond.

Dear All,
 

The DMO just announced the coupon for the Federal Government Savings Bond to be 13.01%. Below is a summary of the offer:

2-Year FGN Savings Bond due March 22, 2019: 13.01%
Coupon: 13.01%
Opening Date: March 13, 2017
Closing Date: March 17, 2017
Settlement Date: March 22, 2017
ISSUER: Federal Government of Nigeria (“FGN”)
UNITS OF SALE: N1,000 per unit subject to a minimum Subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000.
INTEREST PAYMENT: Payable Quarterly
REDEMPTION: Bullet repayment on the maturity date.

Please how much will I get if Invest 100k

is this annualised or for the entire life time of the investment? datz 2years

Paramount01:
Please how much will I get if Invest 100k

Thirteen thousand and ten naira (13,010) per year, so for two years, you will get 26,020 naira plus your principal which is 100K.
You will get Naira3252.5kobo each quarter. Payout is quarterly.

yak:
is this annualised or for the entire life time of the investment? datz 2years

Yes, it is per year multiplied by the number of years just like the normal FG Bond.

This bond isn't attractive at all...people will backout. FG ll be forced to revert. Tbill, ll surely cm back as it used to be

munezo:
FGN Savings Bond at 13.01% is not good at all.

I think the Treasury Bills market still maintains the status quo, I just placed my bid for 18.4% with Stanbic IBTC, I will watch to see how it goes.

same with me, i walked into skyebank and placed my bid at 18.3% and they accepted my application. i hope and pray that they get applications worth 50m or more so my application would sail through.

It is my prayer o, that this bad DMO policy will not spoil the TBills market because this FGNSB is not worth it at all. Let's just watch and see, there has to be a way to sort it out.

zamirikpo:


same with me, i walked into skyebank and placed my bid at 18.3% and they accepted my application. i hope and pray that they get applications worth 50m or more so my application would sail through.

munezo:
It is my prayer o, that this bad DMO policy will not spoil the TBills market because this FGNSB is not worth it at all. Let's just watch and see, there has to be a way to sort it out.

the annoying thing is that the bankers at the branch level dont even know jack, i was trying to find out if they know of the new FGNSB and the rates it was like i was speaking greek.

Very true, most bankers are are ignorant of TBills

zamirikpo:


the annoying thing is that the bankers at the branch level dont even know jack, i was trying to find out if they know of the new FGNSB and the rates it was like i was speaking greek.

Headline inflation drops for first time in 15 months to 17.78% year on year in Feb 2017 from 18.72% in Jan 2017

expect to see some reductions in the rates for money market instruments in the coming days!!

feelamong:
Headline inflation drops for first time in 15 months to 17.78% year on year in Feb 2017 from 18.72% in Jan 2017

expect to see some reductions in the rates for money market instruments in the coming days!!

Exactly, with the FGSB going at 13.01% I see CBN pushing treasury bills rate down to force people to embrace the savings bond after all its cheaper to them but then the future of oil prices seems bleak as the outlook for sees fall in oil prices

Source: Nairametrics.com

The National Bureau of Statistics has released its 2017 February Consumer Price Index revealing that Nigeria’s inflation rate increased by 17.78 percent for the period under review. Inflation rate was 18.72 percent in January thus, this is the first time the inflation rate has dropped in 15 Months.

Here are the key highlights

On a Headline basis, the Consumer Price Index (CPI) which measures inflation increased by 17.78 percent (year-on-year) albeit at a slower pace in February 2017, 0.94 percent points lower from the rate recorded in January (18.72) percent.
On a month-on-month basis, the Headline index increased by 1.49 percent in February 2017, 0.48 percent points higher from the rate of 1.01 percent recorded in January.
The drop in inflation rate was mainly due to a significant drop in the Core Inflation Sub-index. Core inflation, which includes every item except food, rose the slowest at 16 percent.
Analysts also attribute the drop to base effects, a situation where a higher inflationary period in the corresponding year will result in slower growth a year after.
Why it is good news?
A slower inflation rate means this is a sign of a decline in the rising cost of goods and services in Nigeria. This will have a positive effect on your purchasing power.
Interest rates on loans and advances may also start to drop in the next couple of months. Currently, lending rates are as high as 26%pa.
A drop in inflation rate could also signal a rise in Real GDP growth rate. This could mean Nigeria could be out of recession as early as the second quarter of 2017.
Foreign investors could see this as a sign of economic recovery and could step up their investment plans in the economy.

I was just told that no more TB unless one has 50m + to spend, can one still transact TB but instead just ask for the bank rate instead as someone mentioned this earlier.

mavverick:
I was just told that no more TB unless one has 50m + to spend, can one still transact TB but instead just ask for the bank rate instead as someone mentioned this earlier.

Yes you should be able to, here is the mail I got from GTB

Good day sir,

Trust you had a splendid weekend.

There is a new circular regulating Treasury Bill. Customer’s bidding at THEIR OWN RATE must tender a minimum bid of above N50 Million.

Please advice if we should proceed with your request
at bank's advised rate.

Regards,

Is it that you can't fix your interest rate or treasure bills as been cancel i

zamirikpo:


the annoying thing is that the bankers at the branch level dont even know jack, i was trying to find out if they know of the new FGNSB and the rates it was like i was speaking greek.

While bankers are expected to generally know something about money market, please note that banks are not brokers for FGN savings bonds.
You can only bid for the new FGNSB through some DMO-accredited stockbrokers not banks.

Paramount01:
Is it that you can't fix your interest rate or treasure bills as been cancel i

The post by iamoasa just above your own post explains it all

Time for Nigerian banks to make a kill. Their opportunity has finally come. You can no longer bid using your own rate. They will now bid high with CBN and bid low with you, thereby making good margin.

I will advise checking the bank you bid with very carefully and ensure you use those that are less heartless (if available at all)

Paramount01:
Is it that you can't fix your interest rate or treasure bills as been cancel i

If you have your 50m and above, then you can fix your rate otherwise you will have follow bank rate. It is as simple as that.

Lalaska:
Time for Nigerian banks to make a kill. Their opportunity has finally come. You can no longer bid using your own rate. They will now bid high with CBN and bid low with you, thereby making good margin.

I will advise checking the bank you bid with very carefully and ensure you use those that are less heartless (if available at all)

we all can share the rates being offered by the various banks here....

that way we can then compare the rates and go to the ones with the best rates..