the treasury bill market is the largest single segment of the money market. the trading of treasury bills in secondary markets is a major tool in the implementation of monetary policy. a treasury bill is an obligation of the government to pay bearer a fixed sum at specified data. treasury bills are regularly issued in maturates of 91 days, 182 days and 365 days, with the 182 or six month bill representing the largest volume. treasury bolls have a minimum denomination of Rs.100000 and goes up from that minimum in increments of Rs. 5000. in Nepal, Nepal rastra bank issue treasury bill on behalf of the government to meet funding gap of the government to support various development programs.treasury bills are sold in as auction market with the government system handing the sales on behalf of the treasury bills do not pay interest directly but are sold at a discount, with the amount of discount being determined by the auction process.
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