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Treasury bill (BAT)

In a nutshell

A Treasury bill is short-term borrowing issued by a government. In the West African Monetary Union (UMOA), BAT stands for Bons Assimilables du Trésor.

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Explained simply

BATs help finance the government’s cash needs. Interest is deducted upfront: the purchase price reflects the expected return.

A practical example

Simplified hypothetical example: paying CFA 970,000 for a scheduled repayment of CFA 1,000,000 at maturity gives a gross difference of CFA 30,000.

Further reading

Source: UMOA-Titres — Treasury bills and bonds.

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What this means

For a scheduled CFA 1,000,000 repayment, the gross difference is CFA 30,000. This is not an annualised rate.

Educational scenarios. Amounts and rates are fictional, not current market conditions.

Is upfront interest reflected in the purchase price?

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