CBI Treasury Bills Auctions Conducted on 04 June 2013

[ronscarpa]

Result of the CBI Treasury Bills Auctions Conducted on 04 June 2013
 

  Tuesday, June 04, 2013 Result of the Treasury Bills Auctions Conducted on 04 June 2013

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ISSUE NO

DURATION(day)

ISSUE DATE

MATURITY DATE

ALLOTTED AMOUNT (QR)

TOTAL BID AMOUNT (QR)

YIELD (%)

QAT031306025

91

4-Jun-13

3-Sep-13

2,000,000,000

5,250,000,000 

0.82 

QAT061306021

182

4-Jun-13

3-Dec-13

1,000,000,000

2,900,000,000

0.98

QAT091306021

273

4-Jun-13

4-Mar-14

1,000,000,000

2,975,000,000 

1.04

 

 

 

No posted USD or IQD Daily Auction for Tuesday, 4 June 2013 on the CBI Website. I've tried to verify from several sources if there was an Auction, but only negative results as of this time (10:12 AM Pacific Time). It would appear that there was no Daily Auction today, only the IQD Treasury Bill Auction identified above.  Have a great day everyone.....and be Blessed...!

RON   

 

[zigmeister]

Now this is interesting.  Treasury Bills, I was wondering when they were going to pop up.  Good observation ron!

[TQueezy]

Didn't they say they were moving to all days a week currency auctions 'cept one day a week? And was the day Tuesday in that scenario? Or Friday still?

[zigmeister]

They have been holding auctions pretty much 7 days a week.  If they were to take one day off it would be their sabbath, which I believe is Friday.  Or is it Saturday?

[ReVbo]

Friday is the holy day in Islam, zig, and they have recently gone to auctions six days a week, with Friday being the day off. If there was no auction today, that would be very interesting. No idea why, but to take Tuesday off is really strange. 

[zigmeister]

So I have they had Tbill auctions before?

[Catluver67]

This is very interesting! I believe SWFG did some research on these in the past...I'd be really curious to hear his input. It might have been someone else but I really think it was him...

SWFG you out there?! Care to enlighten us?? : )

Thanks everyone! Things are definitely getting interesting!

[zigmeister]

What are Treasury Bills

 

http://inflationdata.com/articles/2012/09/01/tbills/

 

T-Bills-

Treasury bills (aka. T-Bills) are short-term debt obligations that are backed by the US government and which have less than a year’s maturity. They are sold in $1000 denominations and purchases can go up to 5 million. Commonly, T-bills come with 4-week (1 month), 13-week (3 month) or 26-week (six month) maturities.

The issuing of T-bills is done by a competitive bidding process where the bids are placed on “discounts from par” which means that unlike in the case of conventional bonds with fixed interest rates, here, it is the bond appreciation that gives the holder his returns.

For example, if you buy a T-bill with a 13-week maturity at $9,950. What happens here essentially is that you give the government the use of your $9,950 and the US government will write you a $10,000 IOU which it agrees to pay you back after the 3-month period. You do not get regular payments as would be the case with coupon bonds. Instead, you get returns for how much the received value ($10,000) differs from the original discounted value paid by you ($9,950). So in this example, the interest rate that the T-bill pays is 0.5% ($50/$9950) over a period of three months. That would be the equivalent of an annual yield of about 2.01%.  The U.S. Treasury publishes the Current T-Bill rate daily. As of this writing the 3 month T-Bill is yielding 0.10% or 0.40% (less than 1/2%) a year. In other words a $10,000 T-Bill will cost you $9,900.

Why do people buy T-bills?

Treasury bills are considered the safest investments that one can make inbonds. They are short term and come with a discount, maturing in less than a year. They also come with full credit and faith of the Treasury, unless the Treasury itself went bankrupt. If you are planning to make an investment and leave out any risk or might need them at short notice again, then Treasury Bills are the ideal place to put in your money. The rate of interest is less than that of savings accounts and money market accounts.

How to buy T- Bills?

T- Bills can be purchased from a bank or via a broker or dealer and also from numerous online websites. Their issue is through auction bidding on a weekly basis. They were formerly paper bills notes but are now available only in an electronic form. You have to decide if you want your bid to be competitive or non-competitive. Non-competitive ones are a simple means to purchase treasury bills and is for those that are not experts in the field of security trading. In this type of bid, you agree to the interest rate that the auction decides, with a guarantee of the acceptance of your bid and of receiving back the complete amount paid by you. The interest rate is not known to you until the auction is closed.

In a competitive bidding, you specifically state the return you wish to receive. This type of bidding is taken up by corporations and those who have an understanding of the demands and supplies of the securities market. You do not have the assurance of your bid being accepted. The interest rate you state must be less than that set by the auction or must be equal to it for it to be accepted. All bidders receive this rate. If your bid exceeds the auction rate, then it will be rejected. Once you have decided on this, you can take part in Treasury Bills auctions.

[MyLadiesDaddy]

So I have they had Tbill auctions before?

I've seen them once before, but not sure of there ramifications.

[Tankwalker]

I couldn't find anything about there not being auctions today, but did find this about tomorrow, so there may not be anything tomorrow either....

 

Baghdad (IraqiNews.com) The Secretariat General of the Council of Ministers decided to suspend the official hours on tomorrow Wednesday in Baghdad.

A statement by the SG cited on Tuesday “The the Cabinet’s SG decided to suspend the official hours at all the government departments in Baghdad on next Wednesday on occasion of commemorating martyrdom of Imam Musa al-Kadhim (peace be upon him).”

Read more:    http://www.iraqinews.com/features/urgent-official-hours-suspended-on-next-wednesday-in-baghdad/#ixzz2VFR7oFfK

 

[zigmeister]

You can bet this is one of their mechanisms to get control of the volatility of the dinar and dollar. 

[blueskyline]

They announced today as a Religious Holiday in rememberence of someone historic . I believe I read that yesterday  . Tank you bet me to it thank you

[Tankwalker]

No problem Blue.  They take holidays on a moments notice...

[ronscarpa]

What are Treasury Bills

 

http://inflationdata.com/articles/2012/09/01/tbills/

 

T-Bills-

Treasury bills (aka. T-Bills) are short-term debt obligations that are backed by the US government and which have less than a year’s maturity. They are sold in $1000 denominations and purchases can go up to 5 million. Commonly, 

Thanks ZigMeister for the info.....I appreciate your post...!

[zigmeister]

Your welcome Ron!

[Catluver67]

Thanks Zig!

[rockfl9]

They have been "rolling over" these 3,6,12 month T-bills for at least 3 years.

[uncirculd]

You can bet this is one of their mechanisms to get control of the volatility of the dinar and dollar. 

I totally agree.   The dinar is fragile right now and they will pull all their resources.

[zigmeister]

Interesting. It looks like this may be a new 90 day bills.  It has June 2013 and a Sept. 2013, Dec. 2013, March  2014.  Looks like 90 day Tbills, 6 month T bills, and 9 months Tbills.  So they had an auction with new issues of their Tbills.  

Edited June 4, 2013 by zigmeister

[ronscarpa]

This is a more readable format.  I was unable to edit it earlier, so I massaged it a bit and re-posted it here for everyone's review and consideration.  Many Blessings to all - RON   

   

 

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Result of the CBI Treasury Bills Auctions Conducted on 04 June 2013

 

  Tuesday, June 04, 2013 Result of the Treasury Bills Auctions Conducted on 04 June 2013

 

​

ISSUE NO.....DURATION(day).ISSUE DATE.MATURITY DATE.ALLOTTED AMOUNT (QR).TOTAL BID AMOUNT (QR).YIELD (%)

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

 

QAT031306025.....91................4-Jun-13.........3-Sep-13............2,000,000,000...................5,250,000,000 ...................0.82 

 

QAT061306021.....182..............4-Jun-13.........3-Dec-13............1,000,000,000...................2,900,000,000....................0.98

 

QAT091306021.....273..............4-Jun-13.........4-Mar-14............1,000,000,000...................2,975,000,000 ...................1.04

 

[zigmeister]

Thanks Ron.  Much clearer.  

[magawatt]

Q: Is the interest received from a US T bill taxed? Or is it like a muni?

[fib1618]

Thanks Ron