A treasury bill/bond is a contract of debt with which an investor loans money to the Government.
When you purchase a treasury bill/bond, you are lending money to the Government (issuer). In return the government promises to pay you a specified rate of interest (the coupon) during the life of the bond and to repay the face value of the bond (the principal or the original amount invested) at maturity.
Basis | Treasury Bill | Treasury Bond |
|---|---|---|
Meaning | It is a short-term money market instrument issued by the government. | It is a long-term capital market instrument issued by the government. |
How long is your money tied up? | Issued with a maturity of one year or less. | Issued with a maturity of 2 years and more |
Interest payments | Issued at discounted price, no interest payments | Not issued at discount. Interest payments every six months |
Types | 91 Day, 182 Day, 364 Day | Government Bond, Infrastructure Bond |
Use our Investor Calendar that is updated directly from the Central Bank. It gives you the ability to add auction and issue dates to your Google/Apple/Outlook calendars.
A bond/bill yield is the amount of return an investor will realize on a treasury bill or the current market interest rate for treasury bonds.
Fastest way is to ask your local commercial bank.
If you are looking to buy bonds over $50,000 then contact Central Bank