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Home > Statistics > Explanatory Notes - Wholesale
 

Explanatory Notes - Wholesale

Overview

Bills are issued at a discount to their face value for periods of 1, 3 or 6 months. Issues are sold by allotment to the highest bidder at monthly auctions on the second Tuesday of each month. Bids are made on a yield basis.
The rate shown is the average secondary market mid rate for 3-month bills, expressed using the standard euro money market yield convention (per cent per annum, using actual days to maturity and a year of 360 days).
Euro bills only have a single maturity date in any given month, namely the Thursday after the second Tuesday of the month. The end-quarter rate reflects the rate on the bill with just under 3 months remaining to maturity. The monthly average is for the bill maturing in the month three months later.
 

Euro/Ecu Bills

Since July 1999 euro bills have been issued by the Bank of England. Prior to this, euro Treasury bills were Government securities representing a charge on the Consolidated Fund of the UK , denominated in euro (before 1999 in Ecu). The procedures for issuance and interest rate calculations for Bank of England euro bills and euro Treasury bills are the same (as follows):  

Key Resources

7 banks are contacted on a daily basis for the median rate for that day, for the relevant type of euro-commercial paper. The rate published is the average of these 7 observations.
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