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The Market for Government Securities
The market for government securities

Government securities market is an important segment of financial market creating a benchmark for the borrowing programme in the private corporate sector and subserving the objectives of both the fiscal policy and the monetary policy (Reddy 2002). The instruments are the treasury bills (T-bills) and the dated securities. While the T-bills are a short-term instrument of the central government involving maturity of less than a year, the dated securities are a medium/long-term instrument, both of them meeting the fiscal deficit of the government. Sometimes T-bills are converted into dated securities in order to allow a rollover of short-term debt on to a long-term period.

As far as the monetary policy objectives are concerned, the issue of these ...

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