Analysing the Behaviour of 91-Day T-Bills During Market Stress Period

The study concludes that 91-day T-Bills in Nepal play a vital role during market stress, with yields declining as investors seek safer assets. The analysis highlights a stronger link between T-Bill yields and liquidity conditions as compared to stock market performance, underscoring their importance in monetary policy. During crises like the liquidity crises and COVID-19, T-Bills provided stability, reinforcing their reputation as a safe-haven asset. These findings emphasize the need for effective public debt management and policy measures to leverage T-Bills for financial resilience. Future research could explore additional macroeconomic variables to further refine understanding of T-Bill dynamics in emerging markets.

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