QCB issues QR 2.9 billion in T bills amid robust investor interest

Qatar Tribune

08-05-2025

Tribune News Network
Doha
The Qatar Central Bank (QCB) successfully concluded its latest treasury bills auction on Thursday, allocating a total of QR2.9 billion against bids amounting to QR10 billion. The auction, which covered various tenors ranging from seven days to 336 days, attracted strong interest from financial institutions, reflecting robust confidence in the Qatari economy and the central bank's monetary instruments.
According to QCB, the allocations were spread across seven different maturities. A new issuance of 7-day bills accounted for QR500 million at a yield of 4.610 percent. The highest yield of the auction, 4.618 percent, was offered on the 21-day bills, which were issued through a tap issuance mechanism and also amounted to QR500 million. The 84-day bills, likewise a tap issuance, attracted a yield of 4.556 percent with an allocation of QR500 million.
For medium-term tenors, the central bank allocated QR500 million for 175-day bills at a yield of 4.367 percent through a tap issuance. Meanwhile, a new issuance of 273-day bills also garnered QR 500 million, yielding 4.265 percent. The longest tenor in the auction, the 336-day bills, saw a tap issuance of QR400 million at a yield of 4.237 percent—the lowest among all maturities.
The yields across tenors suggest a mildly upward-sloping short-term yield curve, particularly in the early durations, followed by a gradual decline for longer maturities. This pattern indicates market expectations of stable or potentially easing interest rates over the coming months.
The sizable demand—more than three times the allocated amount—demonstrates the attractiveness of QCB bills as a low-risk investment avenue and highlights the liquidity management needs of Qatari banks and financial institutions. The combination of new and tap issuances also reflects the central bank's agile approach to managing liquidity while supporting price discovery in the money market.
QCB's continued issuance of bills at regular intervals plays a critical role in reinforcing monetary stability and anchoring short-term interest rates in line with its broader economic objectives. The success of this auction further underscores the central bank's credibility and the resilience of Qatar's financial system.