Manama, Bahrain — Treasury bills valued at Bahrain Dinar 70 million ($185 million) issued this week by the Central Bank of Bahrain have been oversubscribed 109 percent
The bills, carrying a maturity of 91 days, are issued by the CBB, on behalf of the Government of the Kingdom of Bahrain. The issue date of the bills is 28 June 2023 and the maturity date is 27 September 2023.
The weighted average rate of interest is 6.15 percent compared to 6.11 percent of the previous issue on 21 June 2023.
The approximate average price for the issue was 98.469 percent with the lowest accepted price being 98.384 percent, Bahrain News Agency said. The total outstanding value of Government Treasury Bills is BD 2.110 billion.
Treasury bills are short-term debt securities issued by the Central Bank of Bahrain (CBB) on behalf of the Government of Bahrain. They are typically issued with maturities of 91 days, 182 days, and 364 days.
These bills are a popular investment for institutional investors, such as banks and pension funds, because they are considered to be a safe and liquid investment. The CBB issues Treasury bills through a variable-rate auction procedure.
This means that the interest rate on Treasury bills is determined by the demand for Treasury bills at the auction. The CBB also issues Treasury bills through a tap system, meaning it can issue Treasury bills on an ongoing basis, without having to hold an auction.
The interest rate on Treasury bills is set by the CBB and is usually slightly higher than the interest rate on other short-term debt securities, such as commercial paper.