First things first, what are Treasury Bills?
Treasury Bills are discounted short-term securities issued every two weeks by the Debt Management Office on behalf of the Federal Government through the Central Bank of Nigeria.
Securities? What are those?
In this context, securities simply mean that you lend the Federal Government your money to fund short-term government needs with the expectation that you get your money back at maturity.
Lend my money? To the Federal Government? Discounted? What are we doing here? Fundraising? Control cash supply? Reads like some deep state doings.
Basically, the Federal Government borrows your money, pays you the interest on your money at the beginning, and gives you back your money at the end. La fin.
The next auction is tomorrow, and based on the recent auctions, we believe the rates would go as follows:
*The expectations provided are not the actual rates and are only indicative of our projections.
This points to the fact that it is a lender’s market and that you have a lot of attractive fixed income investments to choose from.
Sounds great, right? Let us know how you feel. Reach out to us and get on the money-making journey.