4 months and it begins again…

4 months and it begins again…

Wasn’t it just like yesterday you brought your children home for the second term school vacation and yet they are back to school in the blink of an eye? Of course you know what going back to school entails… School fees, new socks and singlets, maybe new lunch boxes, new stationery and a few more.

But in 4 months’ time, these expenses will look like child’s play in the face of the new school year responsibilities. In September 2019, your child could be in a new class which means bigger expenses

As is normal with many schools, a new class will require entirely new set of books, often new school uniforms, higher school fees, lesson fees, school bus, after school service and those other seemingly small fees that eventually add up. In short, in September, if you are not prepared, you’ll be up to your neck in expense.

That is why this is your big reminder to start preparing ahead of time. As a parent/guardian, now that you’ve paid the third term school fees for your child/ward, this is the time to draw up a mock list of what you could be spending money on ahead of September school year.

Here’s a guide:

  • You can also go ahead and find out the school fees and additional fees pupils/students in the class your child (ren) will be joining in the new school year pay. Also find out books they will require – have these listed giving room for any unexpected hike.
  • When that list is ready, find out cost of the items and pen them down. Now, go ahead and do the math to see how much you may need to foot the bill when the time comes.
  • You now have a tentative sum to work with. Take the next crucial step and start investing diligently towards it.

By the time four months comes around, you should have enough money plus interest accrued to sort school expenses without breaking a sweat.

Start saving for September at www.arminvestmentcenter.com

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Ahead of Auction | Nigerian Treasury Bill | May 16 2019

 

  • The Central Bank of Nigeria will be holding their 6th NTB auction of the year where it plans to rollover N50 billion worth of Nigerian Treasury bills split between 91 Day – N18 billion, 182 Day – N17 billion and 364 Day – N20 billion.
Tenor Amount sold at the last auction  

(N billions)

  

Previous stop rates

 Amount on offer tomorrow

(N billions)
91 5.8 10.29% 5.8
182 29.2 12.6% 29.2
364 23.3 12.85% 23.3

 

  • Our take. With the recent approval of the N8.9 trillion appropriation bill by the Senate, the stage appears set for a ramp up in borrowings over the rest of the year. In fact given the lower NTB maturity profile over the next few months and lower interest rate environment, the case for NTB net issuance at tomorrows auction appears reasonably priced. However, if recent trend at the NTB auctions are anything to go by, we see FG maintaining its unflinching stand towards rolling over maturing NTBs in a bid to trim its cost of debt service.
  • That said, going into tomorrow’s auction, we rule sizeable NTB issuance and at best see FG rolling over its entire maturity for tomorrow. Also in line with recent pattern, coupled with pent up liquidity in the system, we see build up in demand at the 364 Day leg which bodes well for FG’s bargaining power. Assembling these factors, we see room for lower rates at tomorrow’s auction. Please our expectation below:
PRIMARY MARKET CALENDAR & STOP RATES
(TREASURY BILLS)
DATE 91 DAYS 182 DAYS 364 DAYS
16-May-19 13.35% – 13.71% 17.35 – 18.34% 13.56% – 14.00%
02-Aug-17 13.42% 17.40% 18.53%
19-Jul-17 13.43% 17.40% 18.55%
05-Jul-17 13.50% 17.50% 18.60%
21-Jun-17 13.50% 17.50% 18.65%
14-Jun-17 13.50% 17.30% 18.69%
31-May-17 13.40% 17.14% 18.65%
17-May-17 13.50% 17.15% 18.70%
03-May-17 13.60% 17.26% 18.82%
19-Apr-17 13.60% 17.40% 18.98%
05-Apr-17 13.55% 17.21% 18.74%

Ahead of Auction | Nigerian Treasury Bill | May 16 2019

Ahead of Auction | Nigerian Treasury Bill | May 16 2019

 

  • The Central Bank of Nigeria will be holding their 6th NTB auction of the year where it plans to rollover N50 billion worth of Nigerian Treasury bills split between 91 Day – N18 billion, 182 Day – N17 billion and 364 Day – N20 billion.
Tenor Amount sold at the last auction  

(N billions)

  

Previous stop rates

 Amount on offer tomorrow

(N billions)
91 5.8 10.29% 5.8
182 29.2 12.6% 29.2
364 23.3 12.85% 23.3

 

  • Our take. With the recent approval of the N8.9 trillion appropriation bill by the Senate, the stage appears set for a ramp up in borrowings over the rest of the year. In fact given the lower NTB maturity profile over the next few months and lower interest rate environment, the case for NTB net issuance at tomorrows auction appears reasonably priced. However, if recent trend at the NTB auctions are anything to go by, we see FG maintaining its unflinching stand towards rolling over maturing NTBs in a bid to trim its cost of debt service.

 

  • That said, going into tomorrow’s auction, we rule sizeable NTB issuance and at best see FG rolling over its entire maturity for tomorrow. Also in line with recent pattern, coupled with pent up liquidity in the system, we see build up in demand at the 364 Day leg which bodes well for FG’s bargaining power. Assembling these factors, we see room for lower rates at tomorrow’s auction. Please our expectation below:
PRIMARY MARKET CALENDAR & STOP RATES
(TREASURY BILLS)
DATE 91 DAYS 182 DAYS 364 DAYS
16-May-19 13.35% – 13.71% 17.35 – 18.34% 13.56% – 14.00%
02-Aug-17 13.42% 17.40% 18.53%
19-Jul-17 13.43% 17.40% 18.55%
05-Jul-17 13.50% 17.50% 18.60%
21-Jun-17 13.50% 17.50% 18.65%
14-Jun-17 13.50% 17.30% 18.69%
31-May-17 13.40% 17.14% 18.65%
17-May-17 13.50% 17.15% 18.70%
03-May-17 13.60% 17.26% 18.82%
19-Apr-17 13.60% 17.40% 18.98%
05-Apr-17 13.55% 17.21% 18.74%

 

 

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