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Addis Ababa – August 29, 2025 – Ethiopia’s latest Treasury Bill (T-bill) auction has shown booming investor interest, with bids coming in at more than double the amount offered, according to data released by CBE Capital Investment Bank.
What Happened?
On August 20, 2025, the National Bank of Ethiopia offered 19.7 billion birr worth of Treasury Bills for sale. But investors were eager to buy much more, submitting bids totaling 41.9 billion birr. This is a sign of growing demand from banks, businesses, and individuals looking for safe and reliable investment opportunities.
Auction Results by Maturity
Treasury Bills are short-term government debt instruments that come with different repayment periods. Here’s how the auction played out:
- 28-day bills: Yield (interest) was 13.88%
- 91-day bills: Yield was 14.39%
- 182-day bills: Yield was 14.93%
- 364-day bills: Yield was 17.45%
This means that the longer investors are willing to keep their money with the government, the higher the interest they receive in return.
Demand vs. Supply
The auction showed “more money chasing fewer T-bills.” In other words, investors are eager to put money into T-bills, but the supply is limited. This strong appetite reflects growing trust in government securities and a desire for stable, low-risk returns amid economic reforms.
Trend in Yields
Compared to six months ago (February 2025):
- Short-term T-bill rates (28-day & 91-day) have slightly dropped, making them cheaper for the government.
- Longer-term rates (182-day & 364-day) have stayed relatively stable, signaling steady investor confidence.
Why It Matters
For ordinary people, this shows that:
- The Ethiopian government is raising money to cover short-term financing needs without printing more cash.
- Investors are confident enough to lend money to the government.
- Higher yields on long-term bills could attract savers who want better returns than what banks usually offer.
In simple terms: The government asked for 19.7 billion birr, but investors offered 41.9 billion birr – more than twice the amount! This shows Ethiopia’s Treasury Bills are in high demand, and many see them as a safe place to put money while earning steady interest.
