I want to invest in T-bills through zerodha

Bonds
1

Hi sir,
i want to invest in T-bills through zerodha . but in bids section it doesn’t show anything to apply

2
3

T-Bills are open for bidding from Monday 10 AM till Tuesday 6 PM. Explained here.

You can check the issuance calendar for T-Bills here: Issuance calendar for Treasury Bills

4

I have placed a bid through kite for T bill. how do I pay?? Will I get a collect request or should I fund the trading account??

5

The funds will be debited from your trading account. Just ensure you keep sufficient funds by issue closing date.

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6

I have gone to bids sectionm. T Bills on offer available there.However, as you can see, the value is shown as 100. The T bill is supposed to be offwered at discount. Isn’t it? Kindly clarify.

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7

This is exactly confusing the difference between book knowledge and practical things, I studied T-bills from here Government Securities – Varsity by Zerodha according to the section on T-bills it indicates that we should buy it less than its par value of 100 ie: 97 now in kite it always says 100 actual value, question is where is the bidding happening here if it is already at 100?, can someone explain specific to T-Bills and in context of applying via Zerodha how and what is my bid here when all i can enter is amount?

8

The amount at which T-Bills are issued isn’t known beforehand. So Rs. 100 per unit is collected when you place bid. When T-Bills are alloted, these will be alloted at a discounted price based on yield in the auction.

For example, if the T-Bill is alloted at Rs. 95, the extra Rs. 5 will be credited back to your Zerodha account. And the difference of Rs. 5 your return as when T-Bills mature, they are redeemed at par value ie. Rs. 100.

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9

Explained in the above comment @pyarlath.

10

Is this for fresh a.k.a new Tbills or even for existing ones?

Also does this make it a variable interest instead of fixed as what they are advertised for…what i mean is they can also be alloted for 99.99 is that what it means?

11

Thank you so much for the prompt reply. That is clearly understood now. Can you just clarify on G secs also? I see that the money they are collecting at the time of placing the bid is nowhere pointing towards the indicative yield. For example, for 7.18 GS2033, the price on kite bidding is 107.62. This just can’t work out to the 7.19%indicative yield.

12

@ShubhS9 can we buy the Tbills from Secondary mkt like shares, say LTP at 98 and it will be matured at 100?

13

Yes, you can buy T-Bills from the secondary market, however the liquidity is very low.

Yep.

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