Governments of countries periodically borrow money from the public for a short period (less than a year) and in exchange they issue a “certificate” called Treasury Bill. This contains details of how long the loan will be repaid (tenor) and how much interest is associated with it (discount rate). Treasury Bills can be traded to another party (known as the secondary market) and the interest is paid at the beginning of the agreement. They are issued by the Central Bank of the country on behalf of the Federal Government.