Massive Treasury Bill Auction Today: NPR 16.45 Billion to Be Issued

The Public Debt Management Office is set to conduct an auction of Treasury Bills worth NPR 16.45 billion today, March 3 (Falgun 19, 2081), Monday. The bidding will take place from 10:00 AM to 3:00 PM, with the issuance scheduled for Tuesday, March 4 (Falgun 20). This includes the renewal of NPR 6.045 billion in 91-day Treasury Bills, NPR 5 billion in 182-day bills, and the issuance of NPR 5 billion in new (fresh) 364-day bills. These bills will mature on May 21, 2025 (Jestha 21, 2082), September 2, 2025 (Bhadra 17, 2082), and March 3, 2026 (Falgun 19, 2082), respectively. Treasury Bills are short-term government securities used to raise funds for temporary needs, and they can also be utilized for statutory liquidity requirements, interbank transactions, and as collateral.

In the previous auction held on February 24 (Falgun 12), NPR 5 billion worth of 28-day Treasury Bills received bids totaling NPR 16.03 billion, while NPR 7 billion worth of 364-day bills attracted bids of NPR 19.94 billion. The discount rates, ranging between 2.93% and 2.99%, remained below 3%, indicating heightened competition among banks. With ample investable funds available but limited opportunities in other sectors, banks and financial institutions are increasingly turning to government securities to generate returns. The auction is open to participation from all categories of banks, financial institutions, organized entities, and the general public. Bidding will be conducted through the DOMS software, with priority given to the highest bidders.