KATHMANDU: Nepal Rastra Bank (NRB) plans to issue treasury bills amounting to Rs. 17.11 billion.

The Monetary Management Department, operating under the central bank, has initiated an auction for treasury bills spanning 28 days, 91 days, and 364 days, aiming to secure internal debt on behalf of the government.

The NRB intends to auction treasury bills totaling Rs. 5 billion for 28 days, Rs. 10.112 billion for 91 days, and Rs. 2 billion for 364 days, as outlined in the Treasury Bill Auction notice publicly released by the bank on Friday.

Interested parties were invited to submit their sealed auction trading applications by 3 pm on Sunday (December 24, 2023). Bidders are required to participate solely through the Online Bidding System (OBS), with the allocated amount to be settled via the NRB Bank Account, the notice specified.

Allocation of the treasury bills is scheduled for December 27, 2023 (Wednesday). The notice highlighted, “Income earned through discounts is taxable, and 15 percent of the total offered amount was reserved for non-competitive bidders.”

The 28-day treasury bill will reach maturity on January 23, 2024, the 91-day bill on March 26, 2024, and the 365-day Treasury bill on December 24, 2024. In the previous week, NRB had issued treasury bills amounting to Rs. 11.33 billion.

Treasury bills are utilized by the government when short-term funds are required. They serve as a principal tool in the money market, aiding the central bank in securing internal debt for periods not exceeding one year.