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Treasury Bonds

Treasury Bonds - currently have been grouped into 4 tenors 2, 5, 7 and 10 years.

Features

Treasury Bonds have a long term maturity

Biding is done on discount value.

Treasury Bonds have coupons.

Income depends on amount discounted

Pricing

Determined by the trends of  interest rate, market liquidity, Central Bank rate and the overall market sentiment and economic events.

Requirements/Eligibility

Any person with sufficient funds, Commercial banks and general public normally participate in Government Securities by lodging their bid to Central Bank auction.

Benefits to the bank

An investment venue for the bank

Provides the bank with collateral used during liquidity crisis

Helps the bank to observe the Central Bank policy

NOTE:

We invest in Treasury Bills and Treasury Bonds on the primary

and secondary market. We also sell and buy Government securities in the market after the initial offer.