The next treasury bills auction is up for the 9th of October 2013. Rates have been falling lately following the increase in the banks CRR. It appears a lot of funds are now being channelled to more attractive and safer instruments. The banks can’t match TB rates despite the negative impact of tax on fixed deposits and the stock market still represents a risky bet for a lot of people.
Below is a chart from Meristem indicating trend in yeilds over the last few auctions
So what will you be quoting and what tenor are you looking to quote. I suggest you quote between 10%-11% for 90days if you do not want your bank to do the quote on your behalf and then 11-12% for 182days and 364 days respectively. I like to just have the bank make the quotes on my behalf. Are you investing…remember it is important to diversify your portfolio by throwing your cash into some safe instruments.
Updated: An earlier version of this post erroneously put the date for the auction for 10th October instead of 9th October. We regret the error. Thanks to Lanre for observing the error.
I really appreciate your work.
Please, I have a question.
I used to think the auction is done every Wednesday forthnightly but the date you’re quoting here is Thursday.
Is it that there’s a separate date for dealers to submit their bids and another one for the auction?
Thank you.
Oh!!! Thanks for the correction. Its actually 9th of October 2013. Very sorry for the mix up
When will the CBN auction treasury bill? I’m interested.