NRB to issue treasury bills of Rs. 17.11 billion

By A Staff Reporter,Kathmandu, Dec. 23:The Nepal Rastra Bank (NRB) is issuing treasury bills worth Rs. 17.11 billion. The Monetary Management Department under the central bank has issued an auction for the 28-day, 91-day and 364-day treasury bills to obtain internal debt on behalf of the government.

The NRB is going to sell 28-day treasury bills worth Rs. 5 billion, 91-day bills worth Rs. 10.112 billion and 363-day treasury bills worth Rs. 2 billion through auction, according to the Treasury Bill Auction notice of the bank made public on Friday.

The bank called interested parties to submit their sealed auction trading application by 3 pm Sunday (December 24, 2023). The bidders should bid through the Online Bidding System (OBS) only. The allocated amount will be settled through NRB Bank Account, it said.

The bank said that the treasury bills will be allocated on December 27, 2023 (Wednesday). “Discount earning is taxable. Out of the total offered amount, 15 per cent was reserved for non-competitive bidders,” the notice read.

The 28-day treasury bill will mature on January 23, 2024, and the 91-day bill will mature on March 26, 2024. Similarly, the 365-day Treasury bill will mature on December 24, 2024. Earlier last week, the NRB sold treasury bills worth Rs. 11.33 billion. 

Treasury bills are issued when the government needs money for a short period. It is a major instrument of the money market used by the central bank to raise internal debt for one year or less.