ExampleIf a T-Bill has a face value of ETB 100,000, that is the amount you receive at maturity.
51 terms across 4 groups
ExampleTo buy ETB 100,000 of a 91-day T-Bill at 12%, the purchase price is about ETB 97,100.
ExampleIn the example above, 100,000 − 97,100 ≈ ETB 2,900 is the discount.
ExampleAt a 12% discount rate on a 91-day bill, ETB 100,000 of face value costs about ETB 97,100 today.
Put simplyA higher discount rate means you pay less today for the same face value.
ExamplePay about ETB 97,100 today and receive ETB 100,000 at maturity → your return is about ETB 2,900 before fees.
ExampleIf one T-Bill offers 12% and another 10%, the 12% offers a higher return.
Put simplyYield lets you compare returns across different T-Bills.
ExampleA 91-day bill bought on 1 Jan matures around 2 Apr, when you receive the face value.
ExampleCommon Ethiopian T-Bill tenors: 28, 91, 182, and 364 days.
ExampleWith a 5,000 denomination, 4 bills = ETB 20,000 of face value.
ExampleFor ETB 100,000 of face value at 12% over 91 days, invest-today is about ETB 97,100.
ExampleA 0.1% fee on a ~ETB 97,100 purchase is about ETB 97.
ExampleInvest-today about ETB 97,100 + ETB 97 fee ≈ ETB 97,197 total outlay.
ExampleReceive ETB 100,000 at maturity − ETB 97,197 net investment ≈ ETB 2,803 net return.
ExampleYour ETB 2,900 T-Bill return is yours in full: no income tax is withheld on it.
Put simplyYour earnings are not reduced by income-tax deductions.
ExampleIf you need cash before your bill matures, you may sell it to another investor in the secondary market.
ExampleThe 1,003rd auction was held on 13-May-2026.
ExampleYou bid ETB 50,000 in the 91-day tenor at a 13% rate; you fund the discounted amount (about ETB 48,400) plus the broker fee.
ExampleYou ask for 13%; if the cut-off lands below 13% your bid is not accepted.
Put simplyKey point: in Ethiopia, non-competitive bids are available only to institutional investors.
ExampleA bid rate of 13% means you won't accept a return below 13%.
ExampleYou bid ETB 100,000 and the full ETB 100,000 is awarded: a 100% allocation.
ExampleIn the 1,003rd auction (13-May-2026), the government offered about ETB 45.35 billion across tenors.
ExampleIn the 1,003rd auction, investors bid about ETB 79.22 billion against ETB 45.35 billion offered.
ExampleIn the 1,003rd auction, the government accepted about ETB 44.79 billion of the bids.
ExampleAcross the 28/91/182/364-day tenors, the 1,003rd auction issued about ETB 44.79 billion.
ExampleIf the cut-off rate is 13.5%, bids demanding more than 13.5% are rejected.
ExampleIf the cut-off price is ETB 96.50 per 100, bids below that may not be accepted.
ExampleA maximum accepted price of ETB 97.20 per 100 is the lowest-yield bid that was accepted.
ExampleA minimum accepted yield of 12.1% pairs with the maximum accepted price.
ExampleA maximum accepted yield of 13.5% equals the cut-off rate.
ExampleA weighted average price of ETB 96.80 means investors paid an average of 96.80 today to receive 100 at maturity.
Put simplyLarger winning bids influence this average more than smaller ones.
ExampleIf most volume clears near 12.7%, the weighted average yield is about 12.71%.
ExampleWhen your bill matures, you bid again in the next 91-day auction.
Put simplyThere is no automatic rollover for individual investors in the competitive market; to roll over, place a new bid in the next auction.
ExampleA bill issued 24 Jun starts accruing its discount from that date.
ExampleYour funds, deposited with your intermediary in advance, are paid to the government, and your CSD account is credited with the bill.
ExampleEach tenor has its own latest yield, e.g., the 91-day near 11.44% and the 364-day near 15.43%.
ExampleIf 28-day = 11%, 91-day = 12%, 182-day = 12.5%, 364-day = 13%, the curve slopes upward.
ExampleIf the 28-day yields 13% but the 364-day yields 12%, the curve is inverted.
ExampleBids of about ETB 79.22 billion for ETB 45.35 billion offered signalled solid demand.
ExampleETB 79.22 billion bid for ETB 45.35 billion offered is a bid-to-cover of about 1.75×.
ExampleETB 79.22 billion bid for ETB 45.35 billion offered means the 1,003rd auction was about 1.75× oversubscribed.
ExampleT-Bills, repos, and short-term deposits are all money-market instruments.
ExampleBuying a bill directly at the NBE auction is a primary-market purchase.