Kathmandu. Nepal Rastra Bank is going to sell treasury bills worth Rs 29.13 billion. The central bank is going to sell treasury bills of that amount through the process of negotiation. Even earlier, the central bank had sold treasury bills worth Rs 34 billion 20 crores through the negotiation process. The treasury bills that are going to be sold last time are from 28 days to 364 days. For the purpose of raising internal debt, the National Bank is going to sell the said treasury bills.
According to the Central Bank, the current short-term interest on Treasury bills is equal to 7.91 percent. Similarly, the interest for 364 days is equal to 8.80 percent. The interbank interest rate is equal to seven percent.
Treasury Bills are short term (up to one year) borrowing instruments of the Government of Nepal or by a central Bank of any country which enable investors to park their short term surplus funds while reducing their market risk. Treasury Bills are of 4 types on the basis of duration namely 28 days, 91 days, 182 days and 364 days. It is also taken as a basis for the regulator to measure where the short-term interest rate of the banking system is going.