Bahrain Pays 21 Basis Points More for 12 Month Money in 26 Days
The Central Bank of Bahrain sold 100 million dinars of 12 month Treasury bills at a weighted average rate of 5.69 percent on 15 September, against 5.48 percent at the previous issue on 20 August. The rate rose 21 basis points in 26 days, on our calculation. The issue was covered 111 percent.
The rate moved further than the demand did
Cover of 111 percent means bids exceeded the 100 million dinars on offer by 11 percent, on a bill whose weighted average rate had risen 21 basis points since the previous issue. The price data points the same way. The approximate average price was 94.556 percent and the lowest accepted price 94.235 percent, a spread of about 0.3 of a percentage point between the average and the last bid filled, on our calculation. The release describes the average as approximate, so the spread cannot be fixed more tightly.
| Instrument | Date | Result |
|---|---|---|
| 12 month Treasury bill, issue 144 | 15 September 2026 | 5.69%, covered 111% |
| 12 month Treasury bill, previous issue | 20 August 2026 | 5.48% |
| 5 year Development Bond, issue 46 | 11 June 2026 | 6.700% coupon, covered 178% |
Issue 144 carries ISIN BH0005275415, issues on 17 September and matures on 16 September 2027. Issue 46 carries ISIN BH000L925202, issued on 17 June 2026 and matures on 17 June 2031, for 150 million dinars. Both issued by the Central Bank of Bahrain on behalf of the Kingdom, and reported by the Bahrain News Agency. Issue 46 is shown for context on where the Kingdom funds at the long end; a 5 year fixed coupon bond and a 12 month discount bill are different instruments sold to different mandates, and their cover ratios are not comparable.
The repricing reaches the stock slowly
The 100 million dinars priced this week is 4.74 percent of the 2.110 billion dinars of Treasury bills outstanding, on our calculation. On that share, a 21 basis point move at one auction is worth about 1 basis point on the average rate of the whole bill programme, if every other issue in the stock is left where it is, on our calculation. The release does not publish the rates on the rest of the stock, so this is the size of one auction’s reach rather than a measure of what Bahrain now pays across its bills.
Why it matters: The 12 month bill is the shortest paper the Kingdom sells and the first place a change in its funding cost shows up. That cost rose to 5.69 percent from 5.48 percent 26 days earlier, on an issue that drew bids 11 percent above the amount offered. Both halves of the result matter: the rate moved and the paper placed.
Outlook: The release fixes no date or size for the next issue. What is fixed is the stock: 2.110 billion dinars of bills outstanding, repricing to the new rate only as each issue rolls to maturity.
Sources: Central Bank of Bahrain, Bahrain News Agency.
