Treasury bills worth MVR 2.9 billion have been offered for sale to cover state expenditure. The Ministry of Finance’s offer includes MVR 1.8 billion worth of 27-day T-bills and MVR 165 million in T-bills with a 103-day maturity period.

In addition, the government announced the sale of two tranches of T-bills: MVR 119 million with a maturity of 181 days and MVR 829.9 million maturing in 363 days.

The average yield on the T-bills ranges from 3.50 percent to 4.60 percent.

The number of T-bills the government can sell annually to raise the financing needed to maintain the state’s cash flow is approved within the annual budget. The sale of new T-bills often covers settlements for those previously sold.

T-bills are usually issued by the Ministry of Finance once a week to raise money to meet the state’s cash flow requirements and are usually sold to the pension fund, banks, some government-owned companies, and private companies, with interest rates on the bills ranging from 3.50 percent to 4.60 percent.

T-bills are short-term debt instruments issued by the government to raise funds and are issued at a discount, where the buyer receives the face value of the issue upon maturity.