Weighted Average Treasury Bills Rate Update – Mid-May 2025

The Government of Nepal has released the latest weighted average rates for Treasury Bills (T-Bills) as of mid-May 2025, indicating a relatively stable short-term borrowing cost environment with minor fluctuations across various maturities. These rates are critical indicators for investors, banks, and financial analysts, reflecting both liquidity conditions in the market and expectations about future interest rates.

For the 28-day T-Bills, the rate has declined slightly to 2.9316% as of May 6, 2025, compared to 2.9799% recorded on April 22, 2025. This slight dip suggests that the short-term liquidity situation has improved or that market participants expect stable or lower interest rates in the near term.

The 91-day T-Bills showed a minor decrease as well. The rate, updated on May 13, 2025, stands at 2.9455%, just marginally lower than the 2.9508% recorded on April 29, 2025. The near-flat movement in the 91-day rate indicates that short-term market sentiments remain largely unchanged, possibly influenced by the central bank’s cautious monetary stance.

In contrast, the 182-day T-Bills experienced a slight uptick. The rate rose to 2.9748% on May 13, up from 2.9707% just a week earlier on May 6, 2025. This modest increase suggests some tightening in the medium-term liquidity or a shift in investor demand for slightly longer maturities.

Similarly, the 364-day T-Bills rate edged up marginally to 2.9998% on May 13, 2025, from 2.9997% on May 6, 2025. Though the movement is negligible, it signals that yields on longer-term government borrowing remain close to the psychological 3% mark, implying that the market still perceives relative stability over a one-year horizon.

Overall, the weighted average rates across all tenures point to a stable yet cautious treasury bill market in Nepal. The fluctuations are narrow, reflecting a balance between the government's borrowing needs and the prevailing liquidity conditions in the banking sector. These trends are also indicative of the Nepal Rastra Bank's continued efforts to manage short-term interest rates without introducing sudden shocks to the system.