In practice
A treasury bill with a £100 nominal value (an example value not real-life value) will be issued at a price of £86. Assuming a maturity of 91 days, if the buyer holds the bill for the whole period they will receive a repayment of £100, earning a return of £14 on their original investment of £86.
Treasury bills are issued by the DMO during weekly tender sessions which are normally held on Fridays. Members of the public can purchase treasury bills; however, they must do this through one of the market’s primary participants. Primary participants are usually corporate or investment banks, such as JP Morgan Securities Plc and Lloyds Bank Plc. The minimum investment size is £500,000 nominal value.
The DMO website at www.DMO.gov.uk has ...
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