Once again, the CBN Nigerian Treasury Bills (NTB) are on the rise. This comes on the back of previous months of almost lifeless traction, as CBN NTB rates crashed to unimaginable depths.
This article will answer the three most asked questions about the Nigerian Treasury Bills – how do I bid for treasury bills? And when are the next Nigerian Treasury Bills bidding coming up? What is treasury bills (tbills) rate today?
What are Treasury Bills and How do I Bid for Treasury Bills?
As explained in a prior post Learn Everything About Treasury Bills in Nigeria, the Nigerian Treasury Bills are auctioned bills backed by the Nigerian Government and the Central Bank of Nigeria (CBN) at a rate.
Simply put, just think – lending your money to the government who in turn uses the money to fund projects e.g roads, power, and so on. There are important things to note about Nigerian Treasury Bills:
- The NTB investment is fool-proof because the Federal Government NEVER fails to repay
- Borrowing customers are not eligible to submit requests for Treasury Bills in Nigeria
Here’s how to apply/bid for treasury bills:
To bid for treasury bills, the easiest and best way is to bid through your bank. Here is a step-by-step guide on how to successfully bid for treasury bills:
- Fund your bank account with the fund you wish to bid with
- Visit your bank on/before the bidding Wednesday
- Fill a Treasury Bills form
Treasury bills market is divided into 2 – the primary and secondary markets.
The Primary CBN NTB market follows a trend of dates and rates. The CBN NTB auction dates come fortnightly and the marginal rates are given for 91, 182, and 364 days only.
The secondary market is more unpredictable because the bills in this category are already auctioned bills whose owners wish to resell. The secondary market is where investors buy and sell securities they already own, the tenors are not fixed. The bank acts as broker between you and the seller and earns its margin. There is no time constraint.
It is what most people typically think of as the “stock market”, as stocks are also sold on the primary market when they are first issued.
What is Treasury Bills (TBills) Rate Today? (February 2023)
The bid is usually held on every Wednesday by the stakeholders, and the windows to apply the bids open the next Thursday.
However, a good way to predict what happens in the next NTB bid is by quickly taking a glance at the metrics of the event of the last bid.
The Current Nigeria Treasury Bills Rates – CBN NTB Primary Market Last Result (this table is updated every bidding Wednesday):
|Auction date||91 days Stop Rate||182 days Stop Rate||364 days Stop Rate|
|December 9, 2022||6.49%||8.0%||13.99%|
When is the Next CBN Nigerian Treasury Bills Bidding Date?
The CBN NTB Primary Market bids are held fortnightly (every 2 weeks). The next CBN Nigeria Treasury Bills (Tbills) date is Wednesday 21 December 2022.
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