The Ministry of Finance has announced the latest treasury bill issuance, inviting investors to subscribe to MVR 2.23 billion in government securities. The issuance, under Series TB-2025-005, is set for sale on 9 March 2025, with settlement scheduled for 10 March 2025.
Stable Rates Reflect Consistent Demand
The latest issuance sees treasury bill rates holding steady, with minimal fluctuations across different tenures:
- 1-month T-bills: 3.50%
- 3-month T-bills: 3.87%
- 6-month T-bills: 4.23%
- 1-year T-bills: 4.6%
The stability in rates suggests continued investor confidence in government securities. The demand for short-term financing instruments, particularly from commercial banks and institutional investors, remains strong.
Breakdown of Previous Issuance
In the previous auction under Series TB-2025-004, the government raised a total of MVR 1.22 billion through treasury bills, with allocations as follows:
- 1-month T-bills: MVR 220 million
- 3-month T-bills: MVR 115.03 million
- 6-month T-bills: MVR 125 million
- 1-year T-bills: MVR 759.37 million
Compared to previous issuances, the latest offering signals an increased short-term borrowing requirement by the government, possibly tied to cash flow management and fiscal commitments.
