Mitb

Malaysian Treasury Bills (MTB) MTB be short-term securities effd by the Government of Malaysia to raise short-term funds for Governments working capital. Bills argon sold at discount through competitive auction, facilitated by Bank Negara Malaysia, with original maturities of 3-month, 6-month, and 1-year. The redemption will be make at par. MTB are issued on weekly basis and the auction will be held one mean solar sidereal day before the issue date. The flourishing bidders will be determined according to the most competitive pass offered.Normal auction day is Thursday and the result of successful bidders will be announced one day after(prenominal). MTB are tradable on yield basis (discounted rate) based on bands of remaining tenure (e. g. , surround 4= 68 to 91 days to maturity). The standard trading amount is RM5 million, and it is actively traded in the secondary market. Malaysian Islamic Treasury Bills (MITB) MITB are short-term securities issued by the Government of Malay sia based on Islamic principles. MITB are usually issued on a weekly basis with original maturities of 1-year.Normal auction day is Thursday and the results of successful bidders will be announced one day after, on Friday. Both conventional and Islamic institutions hindquarters buy and trade on MITB. The MITB are structured based on Bai Al-Inah principle, part of swap and buy back concept. Bank Negara Malaysia on behalf of the Government will sell the identified Governments assets on competitive bare-assed basis, to form the underlying transaction of the deal. Allotment is based on highest price tendered (or lowest yield).Price is determined after profit element is imputed (discounting factor). The successful bidders will then pay cash to the Government. The bidders will subsequently sell back the assets to the Government at par based on credit term. The Government will issue MITB to bidders to represent the debt created. MITB are tradable on yield basis (discounted rate) based on bands of remaining tenure (e. g. , Band 4= 68 to 91 days to maturity). The standard trading amount is RM5 million, and it is actively traded based on Bai ad-Dayn (debt trading) principle in the secondary market.