Banker and Advisor to Government

How does the Treasury bill tender operate?

The Central Bank of The Bahamas, as agent for the Government, advertises all T-Bill issues on the Government's behalf. Commercial banks, insurance companies and other interested persons, would then tender, or apply for the bills, which are issued in units of $100. Applications are made for the bills in amounts that applicants wish to hold, and at a rate that reflects the amount they wish to earn.

For example, if a company were to tender for a bill in the amount of $100, it might apply at a rate of 98%. This would mean that the company wishes to purchase a bill, which has a face value of $100.00, but is only prepared to pay $98.00 for it. The difference represents the amount it would like to earn from lending the Government $98 for a period of usually 91 days. On an annual basis, this would amount to an interest rate of 8% per year.

  1. What is the difference between a Treasury bill and a Government Bond?
  2. How are Treasury bill rates determined?
  3. How does the Treasury bill tender operate?
  4. How do I buy Bahamas Government Registered Stock?
  5. What if I needed to sell my Bahamas Government Registered Stock?
  6. What should I do if I've lost my Bahamas Government Registered Stock certificate?
  7. Can I use my Bahamas Government Registered Stock as collateral if I needed to get a loan?
  8. What is the National Debt?
  9. How has the National Debt changed over the past few years?

Available FAQs