The Central Bank of Nigeria will be auctioning treasury bills sales on Wednesday, the 20th of September 2017.
The Primary Market Auction (PMA) for treasury bills will see a total of about N140.89 billion in treasury bills mature while the same amount will be subsequently rolled over.
See breakdown;
91day treasury bills – N28.1 billion
182 days – N23.6 billion
364 days – N89.08 billion
Latest yields
According to data from Meristem, the average treasury bills yield declined by 0.28% to close at 18.38%. Only the yield on the 6M tenor (+0.11%) advanced while the 1M (-0.83%), 3M (-0.22%), 9M (-0.05%) and the 12M (-0.39%) tenors recorded declines.
The report also highlights that the treasury bond space was slightly bearish with an average yield advancement of 0.007% as five (5) instruments recorded yield advancement while yields on two (2) instruments declined. All other bonds traded flat at the close of trading activities.
How to buy this auction
Treasury bills auction have now been limited to investors who have N50 million and above. However, if you have have less than N50 million you can still purchase treasury bills. Here are a few steps.;
Step 1 – Go to your bank and request to purchase treasury bills
Step 2 – They will offer you the secondary or primary market auctions. Secondary market options suggest that you are buying an existing t-bill that is being resold, while primary market means you want to buy a fresh auction
Step 3 – Decide the option you want and go ahead to buy. If it is the secondary option then it is straight forward. Just write a short instruction letter and buy. If it is a primary auction tell them you want the pool option as you do not have more than N50 million
Step 4 – They will pool your funds with that of other people who do not have up more than N50 million until they can pool more than N50 million. You may need to fill a form for this too.
Step 5 – They will charge you a small fee for the service and issue you a confirmation that your application has been processed.
Step 6 – If the pooled funds is successful, you will get a debit alert of the capital, while the interest will remain in your account as paid upfront. For example, if you wanted to invest N1 million for 364 days that went for 18%, they will debit your account with N820,000, leaving the interest of N180,000 in your accounts.
