Treasury Bonds - currently have been grouped into 4 tenors 2, 5, 7 and 10 years.
Treasury Bonds have a long term maturity
Biding is done on discount value.
Treasury Bonds have coupons.
Income depends on amount discounted
Determined by the trends of interest rate, market liquidity, Central Bank rate and the overall market sentiment and economic events.
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
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.