The Central Bank of Bahrain announced today that this week’s BHD100 million ($265.37 million) issue of government treasury bills has been oversubscribed by 113 percent. The bills, carrying a maturity of 12 months, are issued by the central bank on behalf of the government. The issue date of the bills is February 20 and the maturity date is February 19.
The central bank added that the weighted average rate of interest is 5.26 percent compared to 5.36 percent for the previous issue on January 16. Meanwhile, the approximate average price for the issue was 94.953 percent with the lowest accepted price being 94.777 percent.
With the latest issuance, the total outstanding value of government treasury bills is BHD2.110 billion.
On February 3, Bahrain’s central bank also revealed that a BHD70 million issue of government treasury bills was oversubscribed by 237 percent. The bills, carrying a maturity of 91 days, had a weighted average rate of interest of 5.38 percent compared to 5.44 percent in the previous issue on January 29. The approximate average price for the issue was 98.657 percent with the lowest accepted price being 98.656 percent.
The issue date of the bills was February 5, and the maturity date is May 7.
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The Central Bank of Bahrain issues T-Bills with three different maturities: Three-month treasury bills which are issued on a weekly basis, six-month treasury bills which are issued on a monthly basis, and twelve-month treasury bills which are issued on a monthly basis.
Government securities like treasury bills are debt instruments of a sovereign government. They sell these products to finance day-to-day governmental operations and provide funding for special projects.
