Dhaka, Bangladesh (BBN) - The yields on 15-Year BGTBs and 20-Year BGTBs are likely to rise today as banks may express unwillingness to invest their liquidity in the long-term securities.
“The yields on the BGTBs may rise significantly today following policy rate was hiked by 50 basis points to curb inflationary pressure on the economy,” a market insider explained.
Earlier on Sunday, the central bank raised the policy rate, also known as the repo rate, by 50 basis points to 9.0 per cent on the same ground.
The government is set to borrow BDT 20 billion through issuing the two-type of long-term treasury bonds on Tuesday to partly meet its budget deficit.
The cut off yield, generally known as interest rate, on the 15-Year BGTBs came down to 12.65 per cent in the immediate past auction from 12.70 per cent earlier while the yield on the 20-Year BGTBs reached at 12.75 per cent from 12.80 per cent.
Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
On the other hand, four 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