Nepal Government to Auction Treasury Bills Worth NPR 13.5 Billion

The Public Debt Management Office of the Nepal Government is set to auction treasury bills worth NPR 13.5 billion on Monday. This auction is being conducted according to the Nepal Government's national debt auction schedule.

Auction Details:

• New Treasury Bill: An auction for a new (fresh) treasury bill worth NPR 5 billion with a 28-day maturity period will be conducted.

• Renewal Treasury Bill: An auction for the renewal of treasury bills worth NPR 8.5 billion will also be held.

• Auction Time: The auction will take place online from 10 am to 3 pm today.

• Issuance Date: The treasury bills auctioned on Monday will be issued on Tuesday.

Decline in Treasury Bill Interest Rates:

Interest rates on treasury bills have declined due to the sufficient investable capital in banks and financial institutions. Currently, the interest rates for all types of treasury bills are below 3%.

On September 1 (Bhadra 17), the average discount rate for a 28-day treasury bill was 2.9642%, for a 91-day bill was 2.9545%, for a 182-day bill was 2.9923%, and for a 364-day bill was 3.0298%.

Plan for Internal Debt Collection:

Since the beginning of the current fiscal year, the government has raised NPR 15 billion in internal debt through the auction of 91-day, 182-day, and 364-day treasury bills. The government's schedule includes issuing an additional NPR 20 billion worth of treasury bills by the end of October (Asoj).

What are Treasury Bills?

Treasury bills are short-term government securities with maturities of one year or less, issued to raise short-term funds required by the government (up to a maximum of one year). There are four types of treasury bills: 28-day, 91-day, 182-day, and 364-day. These bills are used by the central bank in the open market to manage liquidity and influence interest rates. The government issues various instruments for short-term, medium-term, and long-term internal debt collection.