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 two most asked questions about the Nigerian Treasury Bills – what are the current Nigerian Treasury Bills stop rates at the most recent treasury bills bid done? And when are the next Nigerian Treasury Bills bidding coming up?
What are 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
Divided into 2 markets – 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.
It is what most people typically think of as the “stock market,” though stocks are also sold on the primary market when they are first issued.
What are the Current NTB Rates Today? (August 2021)
Rates for an imminent NTB bidding are not what you may know way beforehand, because it does not get decided until when the event is a day before. So, 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 bids.
The Current Nigeria Treasury Bills Rates – CBN NTB Primary Market Last 3 Results (this table is updated every bidding Wednesday).
|Auction date||91 days Stop Rate||182 days Stop Rate||364 days Stop Rate|
|Wednesday, July 28, 2021||2.50%||3.50%||8.20%|
|Wednesday, July 14, 2021||2.50%||3.50%||8.67%|
|Wednesday, June 30, 2021||2.50%||3.50%||9.15%|
**We note that the stop rates for 91 and 182 days remain unchanged but bids for 364 days have seen marginal changes, with another drop on July 29.
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 (NTB) date is Thursday 12 August 2021.
Look at the table for the subsequent CBN NTB Primary Market Dates for the next 1 year:
|CBN NTB Primary Market Dates|