Treasury Bills

what are us treasury bills

The Central Bank of Malta (the Bank), through the Government Securities Office, also acts as market-maker for Malta Government Treasury bills in the domestic secondary market. Up to 5 October 2014 daily bid, offer prices and yields were published for all outstanding Treasury bills on a same day value (T+0) basis, in respect of deals traded On-Exchange with settlement conducted through TBClear of the MSE, and on a one day value (T+1) basis for deals effected on Free of Payment (FOP) basis through the OTC trading window on Xetra trading system.

Following the move from a T+0 to a T+2 settlement basis as from 6 October 2014, the Bank started to publish the daily bid and offer prices and yields on a T+2 settlement basis to be quoted during the Treasury Bill Dealing Session on the Regular Market. Since the Bank is ready to trade in treasury bills on the Off-Exchange Market on a FOP basis, (settlement outside TBClear), it shall quote treasury bill

prices and yields on a T+1 settlement basis on request (however trading limits exist).

The maturity of these bills (on date of issue) includes one month, three months, six months, nine months and one year. The Bank reserves the right to review its bid price for amounts which are considered to be in excess of normal levels. The Bank does not deal in Treasury bills with less than five working days to maturity.

The daily prices and yields are published on the Bank's website, Reuters, Bloomberg and the local newspapers.

Prior to 1 April 2007, the Malta Government Treasury bills were still in certificate form and were traded OTC. From 1 April 2007 the Malta Government Treasury bills were dematerialised and were admitted to listing and trading on the MSE. Prior to the dematerialisation date, Treasury bill yields were computed on Actual/365 day basis. From 1 April 2007 such yields started to be computed on an Actual/360 day basis.


Category: Bank

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