Treasury Bills In Nigeria - Investment (491)

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Re: Treasury Bills In Nigeria by awesomeJ(m): 12:19pm On Mar 19, 2018

Anyone interested in the primary market Auctions should note that there will be one on Wednesday. Bids should be submitted before COB today.

The auction is for about 54bn across all tenors, so oversubscriptions may not allow for much improvements from last week's rates.

Next auction after this week is 4th April.

2 Likes 2 Shares

Re: Treasury Bills In Nigeria by Nobody: 2:45pm On Mar 19, 2018

awesomeJ:
Anyone interested in the primary market Auctions should note that there will be one on Wednesday. Bids should be submitted before COB today.

The auction is for about 54bn across all tenors, so oversubscriptions may not allow for much improvements from last week's rates.

Next auction after this week is 4th April.

Can we have the calendar so we plan ahead as most of us are not always in town. Thanks a million times

Re: Treasury Bills In Nigeria by MssRose(f): 2:46pm On Mar 19, 2018

awesomeJ:
Anyone interested in the primary market Auctions should note that there will be one on Wednesday. Bids should be submitted before COB today.

The auction is for about 54bn across all tenors, so oversubscriptions may not allow for much improvements from last week's rates.

Next auction after this week is 4th April.

bros abeg how reliable is this information I just called the person in charge of tbills where I bank and he said he has not gotten the information

Re: Treasury Bills In Nigeria by bisiki2: 2:53pm On Mar 19, 2018

GODAKPAN:

Can we have the calendar so we plan ahead as most of us are not always in town. Thanks a million times

2 Likes

Re: Treasury Bills In Nigeria by Gavrelino123: 3:54pm On Mar 19, 2018

awesomeJ:
Anyone interested in the primary market Auctions should note that there will be one on Wednesday. Bids should be submitted before COB today.

The auction is for about 54bn across all tenors, so oversubscriptions may not allow for much improvements from last week's rates.

Next auction after this week is 4th April.

Thanks for the info,but Is tomorrow morning late...?
Because I'm interested...

Re: Treasury Bills In Nigeria by Investnow2017: 5:15pm On Mar 19, 2018

Re: Treasury Bills In Nigeria by Gavrelino123: 5:23pm On Mar 19, 2018

Investnow2017:

@Oga Tony
@AwesomeJ

Please permit me to bother you a little. Can you help me clarify please, I am getting confused here.

I got 337days tenure treasury bills at 18% last year with N1,800,000. I got the interest upfront.

I liquidated today and was paid N1,730,000.

How correct are they?

Sir, you should indicate the month and date you invested and terminated your investment....No magician can compound or discount this phrase....

Re: Treasury Bills In Nigeria by TONY56: 6:26pm On Mar 19, 2018

Gavrelino123:

Thanks for the info,but Is tomorrow morning late...?
Because I'm interested...

With Stambic, tomorrow morning is not late but I don't know about your GTB.

My brother, you want to try again with 364days?
Well, no harm in trying but I doubt if you can get with your bank because the amount on offer is even smaller than was made available last week which was massively over subscribed. I would have preferred that you go for secondary market where you are even likely to get a higher rate than at the Primary market.

I wish you the best of luck

2 Likes

Re: Treasury Bills In Nigeria by Gavrelino123: 6:44pm On Mar 19, 2018

TONY56:

With Stambic, tomorrow morning is not late but I don't know about your GTB.

My brother, you want to try again with 364days?
Well, no harm in trying but I doubt if you can get with your bank because the amount on offer is even smaller than was made available last week which was massively over subscribed. I would have preferred that you go for secondary market where you are even likely to get a higher rate than at the Primary market.

I wish you the best of luck

Boss,i have changed my mind ooo.....i better go with Secondary Market which I'm sure of......Not after waiting till Thursday,no debit alert....it can be very heart-breaking..I will now have to wait until next week Monday again?....Haaa no way!!!
Thanks

Re: Treasury Bills In Nigeria by TONY56: 7:57pm On Mar 19, 2018

Gavrelino123:

Boss,i have changed my mind ooo.....i better go with Secondary Market which I'm sure of......Not after waiting till Thursday,no debit alert....it can be very heart-breaking..I will now have to wait until next week Monday again?....Haaa no way!!!
Thanks

I was wondering why you would like to go through your previous experience again at this uncertain time when you can get better offer that is close to 364days at the Secondary market

1 Like

Re: Treasury Bills In Nigeria by Gavrelino123: 9:57pm On Mar 19, 2018

TONY56:

I was wondering why you would like to go through your previous experience again at this uncertain time when you can get better offer that is close to 364days at the Secondary market

lol

Re: Treasury Bills In Nigeria by lancee(m): 10:34pm On Mar 19, 2018

Gavrelino123:

Boss,i have changed my mind ooo.....i better go with Secondary Market which I'm sure of......Not after waiting till Thursday,no debit alert....it can be very heart-breaking..I will now have to wait until next week Monday again?....Haaa no way!!!
Thanks

Offered 12.3% for 360 days secondary market today

I go manage am for now

Re: Treasury Bills In Nigeria by awesomeJ(m): 10:40pm On Mar 19, 2018

GODAKPAN:

Can we have the calendar so we plan ahead as most of us are not always in town. Thanks a million times

here sir.

Re: Treasury Bills In Nigeria by Gavrelino123: 10:57pm On Mar 19, 2018

lancee:

Offered 12.3% for 360 days secondary market today
I go manage am for now

Wow...that's a cool rate,what bank.?

Re: Treasury Bills In Nigeria by awesomeJ(m): 11:17pm On Mar 19, 2018

Investnow2017:

@Oga Tony
@AwesomeJ

Please permit me to bother you a little. Can you help me clarify please, I am getting confused here.

I got 337days tenure treasury bills at 18% last year with N1,800,000. I got the interest upfront.

I liquidated today and was paid N1,730,000.

How correct are they?

Sorry for the late response ma.
With the amount of info you've given on the transaction, if the bank is Stanbic, my guess is that you made the purchase in July 2017, and there's now about 3 months to maturity.

If that's true, then they rediscounted for you at about 15-16%, and that implies that you must have made an extra gain of about NGN 10,000 off the termination.

If my assumption as per the initiation date is wrong, then you may state the exact date so we can do exact calculations.
Hope your weekend was great.

1 Like

Re: Treasury Bills In Nigeria by awesomeJ(m): 11:21pm On Mar 19, 2018

lancee:

Offered 12.3% for 360 days secondary market today

I go manage am for now

For large guys like yourself sir, that 1 to 1.2% difference becomes pronounced, so why not always shop for rates at FBN?

Re: Treasury Bills In Nigeria by lancee(m): 12:17am On Mar 20, 2018

[quote author=awesomeJ post=65985013]
For large guys like yourself sir, that 1 to 1.2% difference becomes pronounced, so why not always shop for rates at FBN?[/quotes

Thanks bro ...How do i do that ..if i can't go to any of the branches..Any idea

Re: Treasury Bills In Nigeria by lancee(m): 12:18am On Mar 20, 2018

Gavrelino123:

Wow...that's a cool rate,what bank.?

Gt sir

Re: Treasury Bills In Nigeria by Mfunkynation(m): 7:16am On Mar 20, 2018

lancee:

Offered 12.3% for 360 days secondary market today

I go manage am for now

Sir, I got 13% for 195 days on 16 march 2018 via FBN secondary market. Which is much better than ur rates n days. Always tell them to show all rate available around the tenor days u r interesting. Cheers!

Re: Treasury Bills In Nigeria by Investnow2017: 7:20am On Mar 20, 2018

@Oga Tony
@AwesomeJ

Please permit me to bother you a little. Can you help me clarify please, I am getting confused here.

I got 337days tenure treasury bills at 18% last year with N1,800,000. I got the interest upfront.

The transaction date was 12th July, 2017 and like I earlier said, it was a 337-day tenure and was terminated on the 19th of March, 2018.

I liquidated today and was paid N1,730,000.

How correct are they?

Re: Treasury Bills In Nigeria by TONY56: 8:02am On Mar 20, 2018

Investnow2017:

@Oga Tony
@AwesomeJ

Please permit me to bother you a little. Can you help me clarify please, I am getting confused here.

I got 337days tenure treasury bills at 18% last year with N1,800,000. I got the interest upfront.

I liquidated today and was paid N1,730,000.

How correct are they?

Please provide the following informations for us to be able to determine if they are correct:
1.date of purchase & rate
2.date of termination & rate.

Re: Treasury Bills In Nigeria by TONY56: 8:03am On Mar 20, 2018

Investnow2017:

@Oga Tony
@AwesomeJ

Please permit me to bother you a little. Can you help me clarify please, I am getting confused here.

I got 337days tenure treasury bills at 18% last year with N1,800,000. I got the interest upfront.

The transaction date was 12th July, 2017 and like I earlier said, it was a 337-day tenure and was terminated on the 19th of March, 2018.

I liquidated today and was paid N1,730,000.

How correct are they?

Terminated at what rate pls

Re: Treasury Bills In Nigeria by awesomeJ(m): 9:44am On Mar 20, 2018

Investnow2017:

@Oga Tony
@AwesomeJ

Please permit me to bother you a little. Can you help me clarify please, I am getting confused here.

I got 337days tenure treasury bills at 18% last year with N1,800,000. I got the interest upfront.

The transaction date was 12th July, 2017 and like I earlier said, it was a 337-day tenure and was terminated on the 19th of March, 2018.

I liquidated today and was paid N1,730,000.

How correct are they?

Dear Ma, the bills you bought were 364-day biils originally issued on 15th June, 2017, due for maturity on 14th June, 2018.
Having bought the remaining 337-day tenor on July 12, 2017, and terminated on March 19, 2018, It means you held the bills for just 250 days. And the new buyer will hold for the remaining 87 days.
At 18%, the value of the upfront interest that should go to him would have been about 77,439.
But since you said you got back 1,730,000, then it implies that he didn't get up to 77,000, but only got 70,000.
That to you is an additional profit of about 7,439.

Using r=(100I/PT),
The rediscount rate is r= (100*70000*364)/(1,800,000*87)
r=16.27%
i.e your bills were sold at a discount rate of 16.27%

If you factor in charges, the discount rate is likely to actually be 16%, and your real gains should be up to 10,000.
Obviously, the figures here are in line with the guesses I made earlier.

To put things in another perspective, since you only held the bills for 250 days, your total returns should have been (1800000*18*250)/(364*100) = 222,527

But now, your upfront was 299,967 and termination proceeds 1,730,000 totalling 2, 029,967. If you net off your 1.8m principal,
Your returns become 229,967.
Which is #7,440 more than you should have made.

For a shorter response, read my first quote of this question.
It seems accurate enough.

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Re: Treasury Bills In Nigeria by Investnow2017: 12:02pm On Mar 20, 2018

awesomeJ:

Dear Ma, the bills you bought were 364-day biils originally issued on 15th June, 2017, due for maturity on 14th June, 2018.
Having bought the remaining 337-day tenor on July 12, 2017, and terminated on March 19, 2018, It means you held the bills for just 250 days. And the new buyer will hold for the remaining 87 days.
At 18%, the value of the upfront interest that should go to him would have been about 77,439.
But since you said you got back 1,730,000, then it implies that he didn't get up to 77,000, but only got 70,000.
That to you is an additional profit of about 7,439.

Using r=(100I/PT),
The rediscount rate is r= (100*70000*364)/(1,800,000*87)
r=16.27%
i.e your bills were sold at a discount rate of 16.27%

If you factor in charges, the discount rate is likely to actually be 16%, and your real gains should be up to 10,000.
Obviously, the figures here are in line with the guesses I made earlier.

To put things in another perspective, since you only held the bills for 250 days, your total returns should have been (1800000*18*250)/(364*100) = 222,527

But now, your upfront was 299,967 and termination proceeds 1,730,000 totalling 2, 029,967. If you net off your 1.8m principal,
Your returns become 229,967.
Which is #7,440 more than you should have made.

For a shorter response, read my first quote of this question.
It seems accurate enough.

AwesomeJ, you are the best always. Thank you soooooooooooo very much. So it actually pays to liquidate if you bought at a high discount and liquidate when the rates are down. This is a tested experiment for the future.

1 Like

Re: Treasury Bills In Nigeria by 2eggs1goal: 3:30pm On Mar 20, 2018

To liquidate TB, do one have to go to the bank one activated/bought the TB or can any branch of the bank do it.?

Re: Treasury Bills In Nigeria by stanleyuzoh022: 4:25pm On Mar 21, 2018

Please i need someone in Abuja who can help with Tbillz.

Re: Treasury Bills In Nigeria by yinka2011: 6:14pm On Mar 21, 2018

here is the result from todays Primary Market Auction from easykobo

link is here https://www.easykobo.com/News.aspx?id=19953

1 Like

Re: Treasury Bills In Nigeria by Nobody: 11:33am On Mar 22, 2018

Maturity was today, I rather got interest instead of capital. I have never ask for reinvestment. Please good people has anyone experience this. Am not in town to get to the bank. Don't even know the rate. But is stated that it's for 182days

Re: Treasury Bills In Nigeria by awesomeJ(m): 2:25pm On Mar 22, 2018

yinka2011:
here is the result from todays Primary Market Auction from easykobo

link is here https://www.easykobo.com/News.aspx?id=19953

Thank you for always coming through with this. God bless you.

Re: Treasury Bills In Nigeria by awesomeJ(m): 2:27pm On Mar 22, 2018

GODAKPAN:
Maturity was today, I rather got interest instead of capital. I have never ask for reinvestment. Please good people has anyone experience this. Am not in town to get to the bank. Don't even know the rate. But is stated that it's for 182days

Please send an email to the bank for confirmation. It's likely they reinvested.

Re: Treasury Bills In Nigeria by zinaunreal(m): 5:13pm On Mar 22, 2018

my tbillz dropped today. Heading straight to the bank to send it back. Cant stand having the money around.

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