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How to invest in government bonds and treasury bills
Views:1040 | By: Becky | Act: Visit Business
How to invest in government bonds and treasury bills
Government bonds and treasury securities are methods of investments that are often considered risk-free investments. the investment of government bonds is associated with the provision of a loan to the government for a given period. Investing in government securities is a simple process that you can undertake through the Central Bank of Kenya directly or through a commercial bank or an investment bank.
This type of investment provides a consistent source of income over a specified period. Investors who buy these securities are loaning money to the government, which promises to repay them after a specified period, called maturity. 
Therefore how can one invest in government bonds and treasury bills?
1#Access to a bank account
to be able to invest one needs to have a bank account in which they can transact in the buying and selling of the securities. Although having an account is the first step it is necessary to create an account with your specific commercial bank or approach the central bank to transact.
2# Access to investment capital
To purchase a Treasury bill, you must invest a have access to Ksh.100,000.
They are bought and sold as a short-term investment with a discounted sales price and sold for full face value within the maturity period.
on the other hand, treasury bonds are medium to long-term investments. The minimum amount needed for purchase is Ksh50,0000.
 
3# specific period of investment
Treasury bills are a short-term investment, with maturities of 91 days, 182 days, and 364 days. This means that if you invest money in a Treasury bill, you will receive that money back within three months, six months, or one year, depending on your choice.
As for Treasury bonds, they are medium- to long-term investments, and their maturity can range from one year to 30 years.

Remember investments are entities that take money intending to return the money. it's necessary to invest in initiatives that are forthcoming and accessible. This is one method that is guaranteed that the returns are available and equal to the face value price.
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