Dhaka, Bangladesh (BBN) - The yield on 10-Year BGTBs remained unchanged today as the banks expressed their unwillingness to invest excess funds in the long-term securities.
The cut off yield, generally known as interest rate, remained unchanged at 12.55 per cent on the day from the previous level.
“The auction committee allowed to maintain a stable rate on the long-term security for ensuring borrowing its pre-auction targeted amount,” a market insider explained.
The government borrowed more than BDT 21billion instead of the pre-auction targeted BDT 20 billion through issuing the treasury bonds on the day to meet its budget deficit partly.
Currently, five government treasury bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
Besides, four treasury bills (T-bills) are transacted through auction to adjust government borrowings from the banking system. The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.
BBN/SSR/AD